NII Holdings, Inc. (NASDAQ: NIHD)

NII Holdings, Inc., through its subsidiaries, provides wireless communication services under the Nextel brand name to businesses and individuals in Mexico, Brazil, Argentina, Peru, and Chile. Its services include mobile telephone service; Nextel Direct Connect service, which allows subscribers to talk to each other on a push-to-talk basis for private one-to-one calls or on group calls. The company also provides value-added services, including text messaging services; mobile Internet services; e-mail services; location-based services, such as the use of global positioning system technologies; digital media services; and a set of applications available via its content management system and the Android open application market. In addition, it offers business solutions, such as security, work force management, logistics support, and other applications to improve productivity; and international roaming services. NII Holdings, Inc. sells its products and services through direct sales representatives, indirect sales agents, retail stores, kiosks, and Website.

To analyze NII’s stock for potential trading opportunities, please take a look at the 1-year chart of NIHD (NII Holdings, Inc.) below with my added notations:

1-year chart of NIHD (NII Holdings, Inc.)

NIHD has been trading sideways for the last (6) months, and over that period of time $6 (blue) has commonly been an area of support. Yesterday the stock broke below that $6 support and should be on its way back down to the lower level of support at $5 (red).

The Tale of the Tape: NIHD has broken below $6 again. A short trade could be made on any rallies back up to $6 with a stop placed above that level. A break back above $6 would be an opportunity to go long on the stock.

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