CubeSmart (NYSE: CUBE)

CubeSmart is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It engages in ownership, operation, acquisition and development of self-storage facilities. The firm was formerly known as U-Store-It Trust. CubeSmart was founded in July 2004 and is based in Malvern, Pennsylvania.

Take a look at the 1-year chart of Cube (NYSE: CUBE) below with added notations:

1-year chart of Cube (NYSE: CUBE)

CUBE outperformed the market in a big way from June of last year up until its $32 peak in January. Since that peak, the stock has hit that same resistance of $32 (red) a couple more times. Traders should watch for a close above the $32 level, which should lead to another leg higher for the stock.

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The Tale of the Tape: CUBE has a 52-week resistance at $32. The possible long position on the stock would be on a breakout above that level with a stop placed under it.

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