NTELOS Holdings Corp. (NASDAQ: NTLS)

NTELOS Holdings Corp. provides digital wireless communications services to consumers and businesses in Virginia and West Virginia, as well as parts of Maryland, North Carolina, Pennsylvania, Ohio, and Kentucky. It primarily offers wireless voice and digital data personal communication products and services to retail and business customers under NTELOS Wireless and FRAWG Wireless brand names. The company provides network access, data services, feature services, and equipment services; and an interactive Web presence, which offers customers with access to their account, auto-pay billing service, and account monitoring services, such as overage text alerts and other customer care support. It serves consumer, small/medium enterprise, education, municipal, and medical markets through approximately 3 regional call centers, 61 company-operated direct retail locations, 384 indirect retail distribution locations, and 459 third-party payment centers.

Take a look at the 1-year chart of NTELOS (Nasdaq: NTLS) with the added notations:

1-year chart of NTELOS (Nasdaq: NTLS)

NTLS has held a very important level of support at $12 (green) for most of the last 5 months. No matter what the market has done since March, NTLS almost always found support at that level. Now, the stock is approaching $12 again and that might provide another bounce higher.

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The Tale of the Tape: NTLS has a key level of support at $12. A trader could enter a long position at $12 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended 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!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach