The Fresh Market Inc (NASDAQ: TFM)

The Fresh Market, Inc. operates as a specialty grocery retailer. The company offers various perishable product categories, including meat, seafood, produce, deli, bakery, floral, sushi, and prepared foods; and non-perishable product categories, such as traditional grocery and dairy products, as well as bulk, coffee and candy, beer and wine, and health and beauty products. As of March 12, 2013, it operated 130 stores in 25 states of the United States. The company was founded in 1981 and is headquartered in Greensboro, North Carolina.

Please take a look at the 1-year chart of TFM (The Fresh Market, Inc.) below with my added notations:

1-year chart of TFM (The Fresh Market, Inc.)

After selling off from November til March, TFM has slowly worked its way higher. Throughout the year, the stock has created a key level at $55. For example, $55 was support several times last fall, and it has now acted as resistance once already back in May. Now the stock is approaching that level again and that could provide a potential trading opportunity.

The Tale of the Tape: TFM is back up at $55. A trader could enter a short position at $55 with a stop placed above that level. If the stock were to break back above that $55 resistance a long position would be recommended instead.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT