Marsh & McLennan Companies, Inc., a professional services firm, provides advice and solutions in the areas of risk, strategy, and people worldwide. It operates through two segments, Risk and Insurance Services; and Consulting. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, risk control, and mitigation solutions, as well as insurance, reinsurance broking, catastrophe and financial modeling services, and related advisory services. The Consulting segment provides health, retirement, talent, and investments consulting services and products; and specialized management, and economic and brand consulting services.
Take a look at the 1-year chart of Marsh (NYSE: MMC) below with added notations:
MMC had been in an overall uptrend since January. However, the stock has recently stalled, as MMC has repeatedly hit the same resistance at $68 (red). The stock is sitting just under that level now. A solid close above the $68 should lead to another leg higher for MMC.
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The Tale of the Tape: MMC has a 52-week resistance at $68. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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
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