Global Payments Inc. provides payment solutions for credit cards, debit cards, electronic payments, and check-related services. It operates in three segments: North America, Europe, and Asia-Pacific. The company’s services include authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, on-line reporting, industry compliance, and payment card industry security services.
Take a look at the 1-year chart of Global (NYSE: GPN) below with added notations:
After trending higher and higher for the past year, GPN had been trading mostly sideways for the past couple of months. During that time, the stock had created a $93 support level (green), and a key resistance level at $98 (green), which was also GPN’s 52-week high barrier. The stock finally broke above that level yesterday, and should now be moving overall higher.
The Tale of the Tape: GPN broke its 52-week resistance at $GPN. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $98 could negate the forecast for a move higher.
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