Take A Look At The Specialty Grocers
Dragonfly Capital | Jan 20, 2015 02:56PM ET
Specialty grocery stores have been all the rage with shoppers for several years. Starting with Whole Foods Market (NASDAQ:WFM) and moving into The Fresh Market (NASDAQ:TFM) their fresh produce and organic growers have left a big mark on the food buying public. Smaller regional grocers are sprouting up around the country now as well.
Despite this popularity their stock prices took a beating in 2014. Many lost over 50% of their value. But that is ending and some of their stocks are starting to rebound again. one that I am watching in Natural Grocers by Vitamin Cottage (NYSE:NGVC). The weekly chart below shows the bounce off a bottom at 16 in October. The rise since then is confirming a bearish Shark harmonic, which carries a Potential Reversal Zone (PRZ) at 34.50, still a long way above.
This is the most conservative PRZ and there is a second at 40, and were I instead to start the ‘X’ at the March high, a 3rd at 41.30 and 4th at 48.40. The Bollinger Bands® show a clear change of character from a falling to a basing to a rising channel. The center line, the 20 week SMA (roughly 100 day SMA), is also running higher now with price above it.
Looking more closely at that bottoming pattern reveals a Cup-and-Handle pattern on the daily chart. This pattern is triggering as price breaks the Handle higher and carries a target to 41. As it starts to trigger it has support for a run higher from the MACD crossing up and the RSI is bullish and rising as well.
Two timeframes, with two types of technical analysis and several indicators all pointing higher. Perhaps 2015 will be a better year for Natural Grocers.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.