Having hit record highs at the start of the summer, Sprouts Farmers Market Inc (NASDAQ: SFM) has spent much of the past few months sliding lower. It’s a tough pill for investors who believed the good times would last forever, but for those of us on the sidelines, there are actually some reasons to get excited.
Shares of the specialty grocery chain have fallen more than 40% since June, in what has been an almost one-directional slide. However, after logging 15 days of straight losses, they’ve actually started to stabilize this week, rebounding from Tuesday’s low and holding their ground since. Technical indicators show the selling pressure may finally be easing, and with earnings due later this month, bulls appear to be mounting their first real defense in weeks.
