Whole Foods Market, Inc. (NASDAQ: WFM)

Whole Foods Market, Inc. operates as a retailer of natural and organic foods. Its stores offer produce and floral, grocery, meat, seafood, bakery, prepared foods and catering, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, and body care products, as well as lifestyle products including books, pet products, and household products. As of July 30, 2014, the company operated 388 stores in the United States, Canada, and the United Kingdom.
Take a look at the 1-year chart of Whole Foods (Nasdaq: WFM) with the added notations:

WFM peaked back in October at almost $65 and proceeded to lose over 40 percent of its value from there. The stock seems to have bottomed out a bit over the last 5 months. Over that period, the stock has commonly hit a very important level of resistance at $40 (blue). The one time WFM was able to break through $40 the stock ran up to $43. If the stock can break above $40 again, higher prices should follow.

The Tale of the Tape: WFM has a key level of resistance at $40. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $40.
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