CSRA Inc (NYSE: CSRA)

CSRA Inc. delivers a range of IT solutions and professional services to help its U.S. government customers modernize their legacy systems, protect their networks and assets, and improve the mission-critical functions for war fighters and citizens. The company was formerly known as Computer Sciences Government Services Inc. and changed its name to CSRA Inc. in November 2015.

Take a look at the 10-month chart of CSRA (NYSE: CSRA) below with my added notations:

10-month chart of CSRA (NYSE: CSRA)

CSRA has been trending sideways over the past 8 months, while also forming a key level of resistance to watch at the $27 (red) mark. CSRA has already tested that area multiple times, and has now looks to rally back up to it again. A close above that $27 level should lead to higher prices.

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The Tale of the Tape:: CSRA has a key level of resistance at $27. 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 $27.

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