Today’s Big Stock: Harsco Corporation (NYSE: HSC)

Harsco Corporation is a multinational provider of industrial services and engineered products serving global industries. The company operates in fits segments: Harsco Metals & Minerals, Harsco Infrastructure, Harsco Rail and Harsco Industrial. Harsco has locations in over 50 countries, including the United States. The company’s lines of business and related principal business include Outsourced, on-site services to steel mills and other metals producers; resource recovery technologies for the re-use of industrial waste stream by-products; industrial abrasives and roofing granules; engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales; railway track maintenance services and equipment, industrial grating products; air-cooled heat exchangers, and heat transfer products.

To review Harsco’s stock, please take a look at the 1-year chart of HSC (Harsco Corporation) below with my added notations:

HSC has created a couple of important price levels to watch. First, HSC has formed a clear resistance at $24 (navy), which would also be a 7-month high breakout if HSC could manage to move above it. In addition, the stock has been climbing a 6-month, up-trending support level (red), which has now been tested on (6) separate occasions. Eventually, the stock will have to break one of those (2) levels.

The Tale of the Tape: HSC has an up trending support and a clear $24 resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $24. A break below the up trending support would be an opportunity to enter a short trade.

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