SeaWorld Entertainment Inc (NYSE: SEAS)

SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. The company operates marine-life theme park under the SeaWorld brand name in San Diego, Orlando, and San Antonio; Busch Gardens theme parks, which are family-oriented destinations with foreign geographic settings in Tampa and Williamsburg; and water parks under the Aquatica brand in Orlando, San Antonio, and San Diego.

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

1-year chart of SeasWorld (NYSE: SEAS)

SEAS has bounced on top of its $12 support (green) several times during the past 3 months. Now that the stock is falling back down towards that support again, traders should be able to expect some sort of bounce. However, if the $12 support level breaks, lower prices should follow.

The Tale of the Tape: SEAS has a key area of support at $12. A trader could enter a long position at $12 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

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