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.

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.)

After breaking through its $20 resistance in May, ESI has been stuck in a sideways move for the last (3) months. During that time the stock has created a key level of support at $23 (blue) and in addition, the stock has formed a level of resistance at $28 (red). A break below $23 should mean lower prices for the stock and a break above $28 would most likely mean higher prices ahead.

The Tale of the Tape: ESI is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $23, or on a breakout above $28. The ideal short opportunity would be on a break below $23.

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