Nu Skin Enterprises, Inc. (NYSE: NUS)

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, such as ageLOC Transformation skin care system, Nu Skin 180º anti-aging skin therapy system, Nu Skin tri-phasic white, nutricentials, and Nu Skin Clear Action acne medication system.. The company’s personal care products also comprise Nu Colour line of cosmetic products, including tinted moisturizer, finishing powder, lip gloss, and mascara; and Epoch product line, such as body butter, foot treatment product, skin cream, marine mud, leg gel, shave gel, shampoo, and baby hair and body wash products. The company’s nutritional supplements product line comprises micronutrient supplements, anti-aging products, and solutions supplements, as well as weight management products, including supplements and meal replacement shakes. It also sells Vitameal, a nutritious meal product to feed malnourished children or for personal food storage; and household products and digital content storage.

To review Nu Skin’s stock, please take a look at the 1-year chart of NUS (Nu Skin Enterprises, Inc.) below with my added notations:

1-year chart of NUS (Nu Skin Enterprises, Inc.)

First off, NUS has been a somewhat volatile stock recently. So, trading it could present some challenges. However, the stock has managed to form a couple of key price levels to watch. The $45 level (blue) was a clear resistance for the last (3) months until the stock broke above that level about a week ago. NUS has already found new support once at that $45 just this week. The other level to keep in mind is the $40 level (navy) if the stock should happen to break back below $45.

The Tale of the Tape: NUS is currently trading above the $45 level. A long trade could be made on a pullback to $45 with a stop placed under that level. A break below $45 would provide traders with a short opportunity with expectation of a fall to $40.

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