Qorvo, Inc. provides technologies and radio frequency (RF) solutions for mobile, infrastructure, defense, and aerospace applications in the United States and internationally. The company operates through Mobile Products, and Infrastructure and Defense Products segments. The company sells its products directly, as well as through a network of sales representative firms and distributors to original equipment manufacturers and original design manufacturers of mobile products, and infrastructure and defense products.
Take a look at the 1-year chart of Qorvo (NASDAQ: QRVO) below with the added notations:
QRVO has been trending lower since last June, but over the most recent 5 months the $50 price level (red) has become very important to the stock. Not only was the $50 level a key support multiple times at the end of 2015, but that level has also been resistance here in March. If QRVO can break above $50, that should open the door to higher prices.
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The Tale of the Tape: QRVO has a key level at $50. A trader could enter a long position on a break above $50 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made instead on a rally up to the $50 level.
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