Macquarie Infrastructure Company LLC, through its subsidiaries, owns, operates, and invests in infrastructure businesses that provide services to businesses, government agencies, and individuals primarily in the United States. It operates through four segments: International-Matex Tank Terminals, Atlantic Aviation, Contracted Power and Energy, and Hawaii Gas.
Take a look at the 1-year chart of Macquarie (NYSE: MIC) below with my added notations:
MIC’s trend had simply been a down one going into February. However, over the past several months the stock had also created a key level of resistance at $70 (green). A break above that $70 level should mean higher prices for the stock, and yesterday MIC finally broke that resistance.
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The Tale of the Tape: MIC broke through its key level of resistance at $70. A long trade could be entered on a pull back down to that level. However, a break back below $70 could negate the forecast for a higher move and would be an opportunity to get short the stock.
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