U.S. Silica Holdings Inc. (NYSE: SLCA)

U.S. Silica Holdings, Inc., together with its subsidiaries, engages in the mining, processing, and sale of commercial silica in the United States. It operates in two segments, Oil & Gas Propants and Industrial & Specialty Products. The company offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products. It also provides ground commercial silica products for use in plastics, rubber, polishes, cleansers, paints, glazes, textile fiberglass, and precision castings. In addition, the company offers other industrial mineral products, such as aplite, a mineral used to produce container glass and insulation fiberglass; and adsorbent made from a mixture of silica and magnesium for preparative and analytical chromatography applications. It serves oil and gas recovery markets, as well as various industries, including, container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products, and filtration products.

Please take a look at the 1-year chart of SLCA (U.S. Silica Holdings, Inc.) below with my added notations:

1-year chart of SLCA (U.S. Silica Holdings, Inc.)

After skyrocketing in February and March, SLCA fell back to $18 in April and has been trading sideways ever since. During its sideways move, the stock has been consistently stalling at $24 (blue). In addition, SLCA has commonly found support and resistance at $22 (purple).

The Tale of the Tape: SLCA has two levels to watch at $22 and $24. A long trade could be made at $22 or on a break above $24. A short play should be made if the stock breaks below $22.

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