T. Rowe Price Group, Inc. (NASDAQ: TROW)

T. Rowe Price Group, Inc. is a publicly owned asset management holding company. The firm primarily provides its services to individual and institutional investors, retirement plans, and financial intermediaries. Through its subsidiaries, it manages separate client-focused equity, fixed income, and balanced portfolios. The firm also launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and venture capital markets across the globe. The firm was previously known as T. Rowe Price Associates, Inc. T. Rowe Price Group was founded in 1937 and is based in Baltimore, Maryland with additional offices in London, United Kingdom; Central Hong Kong, Hong Kong; Tokyo, Japan; and Singapore.

Please take a look at the 1-year chart of TROW (T. Rowe Price Group, Inc.) below with my added notations:

1-year chart of TROW (T. Rowe Price Group, Inc.)

This stock is very simple. TROW has held a very important level of support at $70 (blue) since back in March. Regardless of what the market has or has not down over that period of time, the stock has never broken that level. Now, TROW is approaching $70 again and that might provide another bounce higher, but the stock’s recent downward move could be setting the stock up for a breakdown.

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The Tale of the Tape: TROW has a key level of support at $70. A trader could enter a long position at $70 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.

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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

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