TD Ameritrade Holding Corporation provides securities brokerage services and technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. The company’s offerings include TD Ameritrade for self-directed retail investors; TD Ameritrade Institutional, which provides brokerage and custody services to independent RIAs and their clients; thinkorswim that offers a suite of trading platforms serving self-directed and institutional traders, and money managers; and Investools, a suite of investor education products and services for stock, option, foreign exchange, futures, mutual fund, and fixed-income investors; Amerivest, an online advisory service that develops portfolios of exchange-traded funds for long-term investors. It also offers products and services, such as common and preferred stocks, exchange-traded funds, options, futures, foreign exchange products, mutual funds, fixed income products, primary and secondary fixed income securities, closed-end funds, and preferred stocks, as well as margin lending, cash management services, and annuities.
To review TD’s stock, please take a look at the 1-year chart of AMTD (TD Ameritrade Holding Corporation) below with my added notations:
AMTD has been trading mostly sideways for the last 3 months. Over that period of time, the stock has formed an obvious resistance level at $28 (red), and in addition, the stock has also created a strong level of support at $25.50 (green). At some point the stock will have to break one of those two levels.
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The Tale of the Tape: AMTD has identifiable levels of support and resistance. The possible long positions on the stock would be either on a pullback to $25.50, or on a breakout above $28. The ideal short opportunities would be on a break below $25.50.
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
Follow me on Twitter: @cmtstockcoach