NCR Corporation (NYSE: NCR)

NCR Corporation provides technology and services that enable businesses connect, interact, and transact with their customers worldwide. The company operates in four segments: Financial Services, Retail Solutions, Hospitality, and Emerging Industries. It offers financial-oriented self-service technologies comprising automated teller machines (ATM); cash dispensers; software solutions, including the APTRA application suite, and cash management and video banking software; and consulting services related to ATM security, software, and bank branch optimization. The company also provides retail and hospitality oriented technologies, such as point of sale terminals, bar-code scanners, and self-checkout kiosks; self-service kiosks to the retail, hospitality, travel, and gaming industries; and installation, maintenance, and managed and professional services.

To review NCR’s stock, please take a look at the 1-year chart of NCR (NCR Corporation) below with my added notations:

1-year chart of NCR (NCR Corporation)

Notice the declining wedge that I have outlined on the chart of NCR (red). A declining wedge price pattern is essentially a type of triangle formation in which the stock (NCR) has formed a downtrending resistance line and a downtrending support level. These two trend lines converging on one another combine to form a declining wedge, which is considered a bullish pattern.

Confirmation of this pattern occurred when the stock broke through the downtrending resistance about a week ago. A break above the key level of $34 should confirm that the stock’s sell-off is over.

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The Tale of the Tape: NCR has confirmed its declining wedge pattern, which should lead to higher prices for the stock. A long trade could be entered on a break above the key level of $34 with a stop placed below that level.

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

Follow me on Twitter: @cmtstockcoach