Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. The company’s Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. Its Asset Management segment offers investment advice and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. The company’s Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. Its Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships.
Take a look at the 1-year chart of Ameriprise (NYSE: AMP) with the added notations:
AMP has been trading mostly sideways for all of 2015. Along the way, the stock has found support at $120 (green) several times. Now that the stock appears to be falling back down to that support level again, traders could expect some sort of bounce. However, if the $120 support were to break, lower prices should follow.
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The Tale of the Tape: AMP has an important level of support at $120. A trader could enter a long position at $120 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