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Angie’s List, Inc. operates a consumer-driven solution for its members to research, hire, rate, and review local professionals for home, health care, and automotive service needs in the United States. The company focuses on delivering its members trusted ratings and reviews of local service providers; providing the opportunity for highly-rated service providers to offer its members discounts and other promotions on local services; and advocating for its members to resolve their complaints with local service providers. As of June 30, 2011, it had approximately 820,000 paid memberships. The company was formerly known as Brownstone Publishing, LLC. and changed its name to Angie’s List, Inc. in April 2010. Angie’s List, Inc. was founded in 1995 and is headquartered in Indianapolis, Indiana.
To analyze Angie’s stock for potential trading opportunities, please take a look at the 1-year chart of ANGI (Angie’s List Inc.) below with my added notations:
ANGI has had a rough go of it since the end of March. However, the stock does seem to be trying to bottom over the last (3) months. During those same months, the stock has created a resistance level at $12 (green). That is the same $12 level that was also support in the prior (3) months (red). So, $12 is a key price to ANGI. A break above that level should result in higher prices for the stock.
The Tale of the Tape: ANGI has a key level at $12. You could short ANGI if it rallies back up to the $12 level with a stop placed above $12, or you could buy the stock if it breaks back above the $12 resistance.
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!
Christian Tharp, CMT