Angie’s List, Inc. operates a consumer-driven solution for its members to research, hire, rate, and review local professionals for home, health care, and automotive service needs. It offers member services comprising member-generated ratings and reviews that provide reviews from members and non-members in approximately 720 categories; and service provider services for members looking for reputable providers of high cost of failure services. As of December 31, 2013, it had approximately 2.5 million paid memberships in 253 local markets in the United States.
To review Angie’s stock, please take a look at the 1-year chart of ANGI (Angie’s List, Inc.) below with my added notations:
ANGI has been trending mostly lower since July of last year. During the last 6 months though, the stock had held a clear level of support at $12 (blue). Even though the market has caused most stocks to move mostly higher over, ANGI had not been able to follow along and has recently broken below $12. This breakdown is both a new 52-week low and a break of a clearly defined support level.
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The Tale of the Tape: ANGI had formed a key support level of $12, which was a 52-week low breakdown. This should signal lower prices ahead for the stock. A short trade could be entered on ANGI on a rally up to $12, with a stop set above that level. A break back above $12 would negate the forecast for a move lower and a long position could be considered instead.
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