América Móvil, S.A.B. de C.V. provides telecommunications services in the United States, Latin America, and the Caribbean. It offers mobile and fixed voice services, including airtime, local, long-distance services, public telephony services, and network interconnection services. The company also provides value added services comprising short message services, multimedia messaging services, and mobile entertainment services; and data services, such as data transmission, e-mail services, Web browsing, instant messaging, content streaming, and interactive applications, as well as corporate network services. In addition, it offers handsets, smartphones, broadband cards, and tablets; accessories consisting of chargers, headsets, belt clips, and batteries; push-to-talk services; and other wireless services that include two wave, PC and wireless security, and machine-to-machine services, as well as Oficina Móvil Telcel, a services suite to enhance applications, video calls, and mobile banking.
Please take a look at the 1-year chart of AMX (América Móvil, S.A.B. de C.V.) below with my added notations:
Movil’s stock had been trading in mostly a sideways range from March through October. Several times over that period the stock also formed a key resistance level at around $22 (blue). Back in November the stock finally broke up out of its base and above that important $22 level. So, assuming AMX holds $22, the stock should be moving overall higher from here.
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The Tale of the Tape: AMX had a key level of resistance at $22 that should now act as support on any pullbacks. A long trade could be entered on a pullback to $22 with a stop placed below that level. A break back below $22 could negate the forecast for a move higher.
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