New Senior Investment Group, Inc. invests in a diversified portfolio of senior housing properties across the United States. It operates through two business segments: Managed Properties and Triple Net Lease Properties. The Managed Properties segment invests in senior housing properties throughout the United States and engages property managers to manage those senior housing properties. The Triple Net Lease Properties segment invests in senior housing and healthcare properties throughout the United States and leases those properties to healthcare operating companies under triple net leases that obligate the tenants to pay all property-related expenses.
Take a look at the 1-year chart of New Senior (NYSE: SNR) below with my added notations:
Over the past 3 months, SNR has hit the $10 level as resistance (red) on several different occasions. In addition, the stock has been climbing a trend line of support (green) since mid-February. Eventually, the stock will have to break either the $10 resistance or the triangle support.
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The Tale of the Tape: SNR is pushing up between two key levels. A long trade could be made at the triangle support or on a break above $10. A break below the trendline would be an opportunity to enter a short trade.
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