Belden Inc. designs, manufactures, and markets signal transmission solutions worldwide. Belden Inc. sells its products to distributors, installers, end-users, and original equipment manufacturers.
Take a look at the 1-year chart of Belden (NYSE: BDC) below with my added notations:
After a couple of major moves lower, and then higher, BDC is sitting exactly where it was at this point last July. In addition, the stock has created an important level of resistance to watch at $65 (red). BDC has tested that level multiple times since last year, and a break above that $65 level should lead to higher prices for the stock.
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The Tale of the Tape: BDC has a key level of resistance at $65. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $65.
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