DXC Technology Company (NYSE: DXC)

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through three segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and United States Public Sector (USPS).

Take a look at the 1-year chart of DXC (NYSE: DXC) below with added notations:

1-year chart of DXC (NYSE: DXC)

DXC has been rallying higher since its IPO earlier this year. However, the stock has recently stalled, as DXC has hit the same resistance at $86 (red) multiple times. Now, the stock is sitting just under that level again. A solid close above the $86 should lead to another leg higher for DXC.

The Tale of the Tape: DXC has a 52-week resistance at $86. 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!

Good luck!

Christian Tharp, CMT