Cooper Tire & Rubber Company (NYSE: CTB)

Cooper Tire & Rubber Company, together with its subsidiaries, manufactures and markets replacement tires worldwide. It operates in two segments, North American Tire Operations and International Tire Operations. The North American Tire Operations segment offers passenger car and light truck tires, as well as distributes tires for racing, medium trucks, and motorcycles to independent tire dealers, wholesale distributors, regional and national retail tire chains, and other automotive product retail chains. This segment sells its products through three own retail stores. The International Tire Operations segment manufactures and markets passenger car, light truck, motorcycle, and racing tires and tire retread material. The company was founded in 1913 and is based in Findlay, Ohio.

Please take a look at the 1-year chart of CTB (Cooper Tire & Rubber Company) below with my added notations:

1-year chart of CTB (Cooper Tire & Rubber Company)

The trades here are pretty simple. CTB has been holding a very important level of support at $24 (blue) for the last (5) months. No matter what the market has or has not done over that period of time, CTB has not broken below that $24 support level. The stock approaching $24 should provide a bounce higher. However, if the overall market were to sell-off, CTB could break that support.

The Tale of the Tape: CTB has a very strong level of support at $24. A trader could enter a long position at $24 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