Agilent Technologies Inc. (NYSE: A)

Agilent Technologies, Inc. provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications, and electronics industries worldwide. Agilent Technologies, Inc. sells its products through direct sales; and distributors, resellers, manufacturer’s representatives, telesales, and electronic commerce.

To review Agilent’s stock, please take a look at the 1-year chart of A (Agilent Technologies, Inc.) below with my added notations:

1-year chart of A (Agilent Technologies, Inc.)

A has formed a key price level at $55.00 (black) over the last (5) months. In addition, the stock created a down trending resistance starting from the middle of January (red). These two lines combined have A stuck trading within a common chart pattern known as a descending triangle. At some point, the stock had to break support or break its string of lower highs, and last week the stock broke support.

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The Tale of the Tape: A formed a descending triangle pattern. A short trade could be made on a rally up to $55.00 with a stop placed above that level. A break back through $55.00 would set up a potential long trade, and another long could be made on a break through the downtrending resistance.

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