ChartMeNot

SFM long after earnings this week

Long
NASDAQ:SFM   Sprouts Farmers Market, Inc
I've been following this stock way too much. Great fundamentals, growth, leadership, they are buying back stock... but somehow they've broken the $25 support (maybe they ran out of money to buy back?). At least it looks like that to me. No matter how I slice it I'm having trouble making a bullish case in the short term. However I'm still targeting $28 in the near term. This chart shows how I think it could happen.

If you look back at their earnings in February, the short-term traders took the stock down nearly 5% the day after earnings . Combined with IV crush this would have been the perfect time to buy calls. Then reality set in that this company is making a lot of money, they announced buybacks, and the stock took off. I'm hoping the same thing happens again this week.

Assuming it drops to $23, the .786 retrace is right at $28.
Trade active: Went long at 23.50, didn't commit enough though. Doji candle and trading above 25 today, closing at 25.03. So that's a good sign. Looking to add to the position soon.
Comment: I expected resistance @ 25. The declining volume could be bullish, perhaps the weak hands are all gone?
Comment: Well the resistance at 25 turned out to be quite strong. New support could be 22 or lower. I'm still very bullish on this company.
Comment: Somehow I managed to miss the strong support at 22 here and missed the whole thing. I am like, how do you say, really bad at this.
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