Hi Tony. I do see the specific formation Brad discusses in his post.
http://www.bigcharts.com/custom/investorline-com/investorline.asp?sid=0&o_symb=US%3Awfmi&symb=US%3Awfmi&time=20&comp=&compidx=aaaaa%3A0&country=ca&draw.x=54&draw.y=2
As well, I agree that investolators need to look at the particular formations to determine the stocks technical strength as opposed to the actual stock price. Ted has commented, though, that the lower priced stocks have a much better chance of achieving larger percentage gains than higher priced stocks. Additionally, if we stop to consider how diversification across a number of TW stock qualifiers can produce a winner quicker than just a single purchase, higher priced stocks such as WFMI may be out of reach for many traders getting started- its just that much more money to try to purchase an even lot.
Ok so now the analysis. Whole Food's clearest "triangle formation" begins with the flat line that runs across the three resistance levels just above $45 beginning at the end of '98. This line converges with the uptrend line that begins in '99 and follows the support points to present. The "ascending triangle" has the benefit of "false resistance" and is considered to be more of a bullish pattern then bearish.
http://www.bigcharts.com/custom/investorline-com/investorline.asp?sid=8393&o_symb=us%3Awfmi&symb=us%3Awfmi&time=12&comp=&compidx=aaaaa%3A0&country=us&draw.x=21&draw.y=22
Although we are confronted with an obvious triangle, what might be our concerns? Triangles are periods of consolidation, and I would consider WFMI'S triangle to defiantly be what Ted refers to as "upper level" consolidation. Ted mentions on page 39 that buying should never be considered until after a minimum of six years, and then only if the last year or more has been quiet (ON UPPER LEVEL CONSOLIDATION PURCHASES ONLY). We do not have six years in this case and we have very busy volume, a concern of itself. With the active volume, the fact this stock could not maintain an upmove during the recent breakout this April is an additional concern.
After all is said and done, if this were the only trade I could find at present, I would only paper trade it and save my money for a candidate more closely fitting of the methods described in Ted's book. As investolators, the more selective we are the higher our chances of capital preservation and success will be.
Take care, Tony.
Lester.