Henry wanted a chart of Whole Foods:
What do you think of WFMI? I see some divergences in the MACD, Force Index, and Elder Ray indicators. They all have an upwards slope making higher lows while WFMI is making lower lows. It recently also bounced off support in the 61.50 area. You think its a good bet for a bullish reversal?
I don't use any of those indicators but if those have worked for you in the past and you see so many bullish divergences then the course of action seems clear to me -- "buy, buy, buy" as Cramer would say.
However, based on my rules and what I see in the chart I would not be looking to buy WFMI just yet. I'd like to see it back above its 200-day moving average before I even thought about buying it. I'd also like to see it make at least one higher-high -- right now that means above the February 16th high. I always want to look at price itself before any indicators that are derived from price.
Here's the chart:
Ah ok thanks for your comments!