CIT Group Inc. operates as the bank holding company for CIT Bank, National Association that provides banking and related services to commercial and individual customers. The company operates through Commercial Banking, Consumer Banking, Non-Strategic Portfolios (NSP), and Corporate and Other segments.
Take a look at the 1-year chart of CIT (NYSE: CIT) below with added notations:
CIT has been trading mostly sideways for the past 6 months. However, the stock has recently stalled again, as CIT has now hit the same resistance at $50 (green) on three separate occasions. The stock is currently sitting just under that level now, and a solid close above the $50 should lead to another leg higher for HIG.
The Tale of the Tape: CIT has a 52-week resistance at $50. 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