Energy Transfer Partners LP (NYSE: ETP)

Energy Transfer Partners, L.P. engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States.

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

1-year chart of Partners (NYSE: ETP)

ETP has formed a trend line of resistance (blue) over the past 6 months. That trendline currently sits just under $17.50. In addition, ETP has a key level of resistance at $17.25 (red). A break above those two resistances should lead to higher prices for the stock.

The Tale of the Tape: ETP is approaching two resistances. A break above that overall resistance area should mean higher prices for the stock, thus a long trade could be made.

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