Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex brands. It offers skin-care systems and treatment products, including age LOC Galvanic Spa System, age LOC Galvanic Body Spa, and age LOC Transformation anti-aging skin care system, as well as other cosmetic, personal, and hair care products. The company also provides age LOC TR90 weight management and body shaping systems; LifePak; age LOC R2 nutritional supplement; and age LOC transformation daily skin care system. It is involved in the research and product development of aging, including the influence of certain ingredients on gene expression.
Take a look at the 1-year chart of Nu Skin (NYSE: NUS) with the added notations:
NUS peaked back in January at almost $140 and proceeded to lose over 70 percent of its value from there. The stock seems to have bottomed out a bit over the last 2 months, and over that period of time the stock has commonly hit a very important level of resistance at $50 (blue). If the stock can break above $50 higher prices should follow.
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The Tale of the Tape: NUS has a key level of resistance at $50. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $50.
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