like an almost “too common” theme, WFM was triggered as an active short on what proved to be a false breakdown about 4 weeks ago. the fact that we had some many well defined trendlines and technical patterns breakdown that week, only to see prices quickly reverse & close the day back inside/above those patterns/trendlines tells me that whether or not those false breakdowns were purposefully engineered or not… the end result is the same: the move higher in the last few weeks was largely fueled by short-covering, as many shorts undoubtedly entered positions when all these recent patterns were triggered about a month ago. (which, coincidentally or not, was also just before a series of major CB market boosting announcements). i have also validated this theory of my by comparing the rise in many of these stocks to the concurrent drop in short interest over that time (at least up until 8/31, the last reporting period).
as far as the WFM short, it is currently down only 4.2% since entry and we now have significant divergences in place below while the prices appear to be starting to trade below what is a very tight and nearly terminal wedge pattern as shown on this updated daily chart. for those who entered last month, a stop over the 100 area might be considered while any entering at current levels could give the short a little more room. T2 is currently my preferred target.