By Jeff Pierce
As a follow up to Dave Ambrose’s article on Annies, Inc. (NYSE:BNNY) I wanted to do an update on the chart as it’s hit my original price target, which happened to be all time highs. These levels often act as a magnet and for that reason the easy money has been made on this chart for now. Consider taking some off the table if you haven’t just to book some gains in the event it has any pullback. Earnings aren’t until Aug 8th so you don’t have that too worry about for awhile.
This stock has basically gone straight up since the article on June 27th but now it’s time for it to pause, regroup, and take a crack at previous highs. If it continues rising straight through resistance I would view that as somewhat bearish because it will likely not be able to sustain those gains. It needs to digest recent gains before starting another leg up.
My short term target for this stock is a pullback near the $41 level. If the pullback is contained that would be where you want to add more to your core position.
Jeff Pierce is a momentum trader that specializes in market timing. He utilizes a proprietary timing system that helps minimize emotions and trading biases within his trading plan. He offers a free newsletter at zentrader.ca that alerts you to trend changes within the market so you’ll always be on the right side of the trade.