Based on good technical signals, SPROUTS FARMERS MARKET INC is potentially setting up for a breakout.

SPROUTS FARMERS MARKET INC (NASDAQ:SFM) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NASDAQ:SFM.

Technical Analysis Observations

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 9 out of 10 to SFM. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SFM is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that SFM is one of the better performing stocks in the market, outperforming 90% of all stocks. We also observe that the gains produced by SFM over the past year are nicely spread over this period.
• SFM is part of the Consumer Staples Distribution & Retail industry. There are 41 other stocks in this industry. SFM outperforms 97% of them.
• SFM is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so SFM is leading the market.
• In the last month SFM has a been trading in the 36.21 - 39.70 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.

For an up to date full technical analysis you can check the technical report of SFM

How do we evaluate the setup for NASDAQ:SFM?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:SFM has a 10 as its setup rating:

Besides having an excellent technical rating, SFM also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 40.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.51, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for SFM in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:SFM?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.