Volume Bar Sell signal in Whole Foods

I like $WFM as a company and feel their growth prospects are exciting. However, when it comes to trading the stock, I look for high probability entries (as does any trader).

With that in mind, I have been reviewing the Daily chart and noticed 2 things worth pointing out:

WFM_falling_wedge

1) Falling Wedge was resolved to the upside. The MACD Ski Jump looks nice too, given it is Winter and the X-Games was just on TV. However, Now a Hanging Man candle is forming for today – this is a Bearish Trend Reversal signal (needs confirmation tomorrow, 01/29/2013).

2) More importantly though, this is Day #8 for a Green Volume bar so the probability of continuing up continues to decrease dramatically with each passing day. Time for a short-term short position.

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