Maxwell Technologies Inc. (NASDAQ: MXWL)

Maxwell Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets energy storage and power delivery products, and microelectronic products worldwide. The company offers Ultracapacitors that are energy storage devices to provide energy storage and power delivery solutions for applications in transportation, automotive, information technology, renewable energy, and industrial electronics industries; and CONDIS high-voltage capacitors comprising grading and coupling capacitors, and capacitive voltage dividers used to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution, and measurement of high-voltage electrical energy. It also provides radiation-hardened microelectronic products, including single board computers and components, such as high-density memory and power modules for satellites and spacecraft applications. The company markets and sells its products through direct and indirect sales for integration by original equipment manufacturers into a range of end products.

Please take a look at the 1-year chart of MXWL (Maxwell Technologies, Inc.) below with my added notations:

1-year chart of MXWL (Maxwell Technologies, Inc.)

The trades here are pretty simple. MXWL has been holding a very important level of support at $6 (navy) for almost the entire year. No matter what the market has or has not done over that period of time, MXWL has not broken below that $6 support level. The stock approaching $6 should provide a bounce higher. However, if the overall market were to sell-off, MXWL would most likely break that support and fall to a new 52-week low.

The Tale of the Tape: MXWL has a very strong level of support at $6. A trader could enter a long position at $6 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

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