Sprouts Farmers Markets Inc looks to be breaking out of a traditional bull flag pattern.
As the “NoGo” trend ended, GoNoGo Oscillator rode the zero line and then broke into positive territory in the beginning of November on heavy volume. This led to a change in trend environment as the GoNoGo Trend painted a couple of amber “Go Fish” bars before identifying a “Go” trend. After a strong move higher, price consolidated against the new trend as GoNoGo Trend painted a succession of weaker aqua bars and the GoNoGo Oscillator crashed to the zero line. It has found support at this level as we would expect if the trend is strong. Now, GoNoGo Oscillator moves back into positive territory as price breaks out of the flag. We see a Go Trend Continuation icon (green circle) under the price bar (the second of the consolidation) telling us that momentum has returned in the direction of the “Go” trend. A measured move from the run into the pattern puts a target at just under $32.
