Shares of Whole Foods Market, Inc. (NASDAQ:WFM) have been on a recent steady downtrend, causing some worry for shareholders.
In order to gauge which way a stock is trending, you must compare a stock’s share price to its moving average. Uptrending stocks trade above their moving averages, while downtrending stocks trade below.
When a stock is experiencing a downtrend, it makes consecutive lower lows as well as lower highs, making its price decline. Each successive relative low is below the preceding day’s low, and each successive relative high is below the preceding day’s high. A downtrend continues until the series of lower highs and lower lows is changed. This indicates a buy signal, and is an indication that a downtrend will end soon.
It is important to consider the moving averages of a downtrending security. We see here that Whole Foods Market, Inc. (NASDAQ:WFM) is -2.86% away from the 20-Day Simple Moving Average. Their 50-Day Simple Moving Average is a difference of -7.23% from current levels. Further back, their 200-Day Simple Moving Average is -9.60% difference from today’s price. Currently, the stock is -18.92% from its 50-Day High and 1.59% from the 50-day low.
RSI and Recommendations
Whole Foods Market, Inc.’s RSI is 36.23. Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 1.25% and month of 1.68%. Wall Street analysts have a consensus 3.10 recommendation on the stock.
Whole Foods Market, Inc. (NASDAQ:WFM)’s performance this year to date is -14.06%. The stock has performed -0.59% over the last seven days, -7.40% over the last thirty, and -9.58% over the last three months. Over the last six months, Whole Foods Market, Inc.’s stock has been -7.84% and -7.54% for the year.
Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.
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