Nordson Corporation (NASDAQ: NDSN)

Nordson Corporation engineers, manufactures, and markets products and systems for dispensing and processing adhesives, coatings, polymers, sealants, biomaterials, fluid management, testing and inspection, surface treatment, and curing. The company operates in three different segments: The Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems segments . The company markets its products in the United States and internationally through direct sales force, distributors, and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.

Please take a look at the 1-year chart of NDSN (Nordson Corp.) below with my added notations:

1-year chart of NDSN (Nordson Corp.)

There are two prices in particular that standout on NDSN. The first is the 52-week high resistance at $75 (blue). The other is the $70 level (green) that was a key support in October, November and December. Now that the stock has gotten back above the $70 level, a run to $75 could be in the cards. A decline back below that level should mean new lows for NDSN.

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The Tale of the Tape: NDSN has key levels of $70 and $75. A long trade could be made at $70, or on a break through $75, with a stop placed below the level of entry. However, if the stock were to break below $70 traders might want to look to get short on the stock.

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