ITT Educational Services, Inc. (NYSE: ESI)

ITT Educational Services, Inc. provides postsecondary degree programs in the United States. It offers master, bachelor, associate, and career oriented education programs in various fields, such as information technology, electronics technology, drafting and design, business, criminal justice, and nursing and health sciences. The company’s information technology programs include communications, network administration, network technology, software development, systems technology, and technical support; and electronics technology programs comprise communications, computer technology, electronics product design and fabrication, industrial electronics, instrumentation, and telecommunications. Its drafting and design programs consist of architectural and construction drafting, civil drafting, computer aided drafting, electrical and electronics drafting, interior design, landscape architecture, mechanical drafting, and multimedia communications; business programs comprise accounting, business administration, financial services, manufacturing, marketing and advertising, and sales; and criminal justice programs include corrections, cyber security, investigations, and security and policing. The company’s health sciences programs comprise health information technology and nursing.

Please take a look at the 1-year chart of ESI (ITT Educational Services, Inc.) below with my added notations:

1-year chart of ESI (ITT Educational Services, Inc.)

ESI peaked last July at $65 and lost more than 80% of its value from there. The stock seems to be forming a base over the last (6) months all the while hitting a very important level of resistance at $20 (red). No matter what the market has or has not done since December, ESI has not been able to break through that area of resistance. If the stock can finally move above $20, higher prices for the stock should follow.

The Tale of the Tape: ESI has a key level of resistance at $20. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $20.

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