Bankrate, Inc. publishes, aggregates, and distributes personal finance content on the Internet. The company distributes its content and rate information through its online network consisting of Bankrate.com, its flagship Website that aggregates rate information on approximately 300 financial products, and other personal finance Websites; provides Web services to approximately 75 co-branded partners comprising personal finance sites on the Internet; and licenses editorial content to approximately 100 newspapers on a daily basis. Its products and services include providing information on rates for various types of mortgages, home lending, and refinancing options; original articles that cover topics, such as trends in housing markets and refinancing perspectives; and rate information on various deposit products that comprise money market accounts, savings accounts, and certificates of deposit, as well as online analytic tools to calculate investment value using customized inputs. The company also offers insurance quotes for auto, business, home, life, health, and long-term care. In addition, it provides credit card information and comparison capabilities, and allows consumers to search for cards; and information on retirement, taxes, auto, and debt management.
To analyze Bankrate’s stock for potential trading opportunities, please take a look at the 1-year chart of RATE (Bankrate, Inc.) below with my added notations:
RATE has been trending sideways for the last (5) months. As the stock has bounced along, it has formed a couple of key price levels to watch. The first is the $10 level (blue) that has acted as support on a couple of occasions. The other is the $12 level (red) that RATE is currently trading just above and should act as support on any pullbacks.
The Tale of the Tape: RATE’s main level to watch at this time is $12. A long position could be entered at the $12 support with a stop placed below that level. A short play could be made on a break below $12 with an expectation of a fall back down to the $10 level.
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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