DeVry Education Group Inc. provides educational services worldwide. It operates in three segments: Medical and Healthcare; International and Professional Educational; and Business, Technology and Management. The Medical and Healthcare segment operates American University of the Caribbean School of Medicine, Ross University School of Medicine, Ross University School of Veterinary Medicine, Chamberlain College of Nursing, and Carrington College. The International and Professional Education segment operates various institutions comprising Fanor, Ruy Barbosa, ‘REA1, Faculdade Boa Viagem, Centro Universit’rio Vale do Ipojuca, Faculdade Diferencial Integral, Faculdade DeVry Sao Luis, and Faculdade DeVry Joao Pessoa, which primarily offers undergraduate and graduate programs in business, management, medical, healthcare, law, and engineeringThe Business, Technology and Management segment offers career-oriented masters, bachelors, and associate degree programs in technology, science, business, and the arts.
Take a look at the 1-year chart of DeVry (NYSE: DV) with the added notations:
DV has been trending lower since its December peak near $50, but the stock finally found some support towards the end of April. Since that low the stock has been holding a 52-week low support at $30. A break of that level would most likely lead to much lower prices for the stock.
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The Tale of the Tape: DV has a key level of support at $30. A trader could enter a long position at $30 with a stop placed under the level. If the stock were to break below the support a short position could be entered 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