Palladon Ventures Ltd. (NYSE:PLL)

Pall Corporation engages in manufacturing and marketing filtration, purification, and separation products and integrated systems solutions worldwide. The company’s Life Sciences segment provides technologies that facilitate the process of drug discovery, development, regulatory validation, and production used in the research laboratories, pharmaceutical, biotechnology, and food and beverage industries, as well as in hospitals at the point of patient care. It offers medical products to control the spread of infections in hospitals. This segment also provides validation services to drug manufacturers; laboratory products for use in drug research and discovery, quality control testing, and environmental monitoring applications. Pall Corporation’s Industrial segment provides various technologies to producers of energy, oil, gas, renewable and alternative fuels, electricity, chemicals, and municipal water. This segment also offers filtration and fluid monitoring equipment for use on commercial and military aircraft, ships, and land-based military vehicles in the aerospace industry; filtration and purification technologies for the semiconductor, data storage, fiber optic, advanced display, solar, and materials markets.

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

PLL

For the past (2) months PLL has created a couple of short-term price levels to watch. First, PLL has formed a clear resistance level at $62 (navy), which was also a key support in September-October. In addition, the stock has also been forming an uptrending support level (red). These two levels combined have PLL stuck within a common chart pattern known as an ascending triangle that will eventually have to break one way or another.

The Tale of the Tape: PLL is currently stuck between its uptrending support and the $62 resistance. A long trade could be made on a break above $62. On the other side, you could enter a short trade on PLL on a rally up to $62 or if the stock breaks below the uptrending support level.

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