Todays Big Stock: Itron, Inc. (NasdaqGS: ITRI)

Itron, Inc. is a technology company, offering end-to-end smart metering solutions to electric, natural gas, and water utilities around the world. Itron’s metering solutions, meter data management software, and knowledge application solutions bring additional value to a utility’s metering and grid systems. Its professional services help its customers project-manage, install, implement, operate, and maintain their systems. The company classifies metering systems into three categories: standard metering, advanced metering systems and technology, and smart metering systems and technology.

Before discussing the potential trading opportunities with ITRI (Itron, Inc.), please review the 1 yr. chart of ITRI that I have outlined below, with my added notations:

Like a lot of stocks, ITRI has had a rough go of it over the last year. Over the last 3 months though, the stock has created (2) very important price levels in which to trade off of: First, the $40 resistance (red). Second, the $35 level has been very common. The $35 has been both support (navy) and resistance (blue) since August. ITRI is currently trading in between those (2) levels.

The Tale of the Tape: ITRI is trading between (2) important price levels at $35 and $40. A rise to the $40 resistance would be a great opportunity to enter a short trade, while a break above that $40 could be a nice long trade. A trader could also enter a long trade on a pull back down to the $35 support, or a short trade on a break below the $35.

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