ATTENTION “Today’s Big Stock” READERS!! I will be conducting a LIVE and FREE webinar this Wednesday at 12:00ET titled – “3 Stock Market Chart Patterns You Need to be Watching . . . or Lose Thousands of Dollars!”
If you care about protecting your money, or want to make thousands of dollars based on the TBS method, you do not want to miss this event! Here’s the link to register:
Even if you cannot attend the webinar live, feel free to register for the event and I will send you a recording of the webinar after it is over!!!
Please take a look at the 1-year chart of NUAN (Nuance Communciations, Inc.) below with my added notations:
NUAN has been holding a very important level of support of $18 (blue) since February of this year. No matter what the market has or has not done since then, the stock has held that $18 level. NUAN is approaching $18 again and that should provide another bounce higher, but if the overall market sells-off, NUAN could break that support.
The Tale of the Tape: NUAN has a very strong level of support at $18. A trader could enter a long position at $18 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.
DON’T FORGET to register for my FREE, LIVE webinar: “3 Stock Market Chart Patterns You Need to be Watching . . . or Lose Thousands of Dollars!” Again, here’s the link to register: Free 5 Star Trading Academy Webinar!
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!
Christian Tharp, CMT