Trade of the Day: SMPL

StatsEdgeTrading | Michael Nauss CMT

Analysis & Trade Idea

Today, let’s look at Sprouts Farmers Market (SFM) and Simple Foods (SNPL).

Sprouts Farmers Market (SFM)

SFM recently came up on my watchlist. The scan I used is backtested extensively, showing impressive returns from $1 to $128 since 2000. Currently, SFM looks strong, closing well today, but may not hit the pullback level I had set.

• Monthly Chart: SFM has been performing exceptionally well.

• Pullback Level: Watching for a potential pullback to a predefined level, though it seems unlikely to happen this week.

Simple Foods (SNPL)

SNPL, in the same sector as SFM, is holding its pullback better. We see multiple bottoming tails, indicating potential accumulation by institutions at this level.

• Anchored VWAP: Drawing from a significant high-volume candle, the anchored VWAP aligns with the current support level.

• Trade Plan: Looking for a break above $36.25 to confirm the move off this level, with a stop loss just below the recent lows. This sets a risk of about $1 per share, aiming for new highs if the trade works out.

Key Takeaways

• SNPL: Potential accumulation, waiting for a breakout above $36.25.