RPM International Inc. manufactures, markets, and sells specialty chemical products for industrial, specialty, and consumer markets worldwide.
Take a look at the 1-year chart of RPM (NYSE: RPM) below with added notations:
RPM had been trending overall higher going into the summer of 2016. However, the stock eventually stalled, as RPM has hit the same resistance at $55 (red) on more than one occasion. The stock is sitting just under that level now. A solid close above the $55 should lead to another leg higher for RPM.
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The Tale of the Tape: RPM has a 52-week resistance at $55. 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
Follow me on Twitter: @cmtstockcoach