Some Profit-Taking In Whole Foods After Overdone Rally

Whole Foods Market, Inc. WFM shares are trading lower by $1.00 (3 percent) at $33.17 in Tuesday's session. That's only a third of its gains from Monday's session ($31.07 to $34.17) when the Street became enamored with the announcement that Jana Partners has taken a 9 percent stake in the company.

Also working against Monday's late buyers is the initiation of coverage by Standpoint Research with a Sell rating and $28.00 price target.

After a flat open, Whole Foods' stock couldn't revisit Monday's high ($34.68), only reaching $34.38 before reversing course. It has continued to make lows for the session, with the current one standing at $33.10, only few cents away from it current price.

If the decline continues, support may be limited until Monday's low of $31.02.