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Stericycle, Inc., together with its subsidiaries, provides regulated waste management and related services. It offers various services, which include institutional regulated waste management services; Bio Systems reusable sharps management services to reduce the risk of needle sticks; pharmaceutical waste disposal services and hazardous waste disposal services; integrated waste stream solutions program; various products and services for infection control; Steri-Safe OSHA and HIPAA compliance, and clinical services programs; regulated returns and waste management services for expired or recalled products; and patient communication services. The company serves large-quantity generators of regulated waste, such as hospitals, blood banks, and pharmaceutical manufacturers; and small-quantity generators of regulated waste, such as outpatient clinics, medical and dental offices, long-term and sub-acute care facilities, veterinary offices, municipalities, and retail pharmacies.
To review Stericycle’s stock, please take a look at the 1-year chart of SRCL (Stericycle, Inc.) below with my added notations:
For the last (5) months SRCL has been stuck within a common pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. SRCL’s rectangle pattern has formed a $95 resistance (red) and a $90 support (navy). A break above $95 would also be a new 52-week high.
The Tale of the Tape: SRCL has formed a rectangle pattern. The possible long positions on SRCL would be either on a pullback to $90, or on a breakout above $95. The ideal short opportunity would be on a break below $90.
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