Boardwalk Pipeline Partners, LP (NYSE: BWP)

Boardwalk Pipeline Partners, LP, through its subsidiaries, provides transportation, storage, gathering, and processing services for natural gas, and natural gas liquids and other hydrocarbons (NGLs) in the United States. It operates interstate natural gas and NGLs pipeline systems, and integrated storage facilities.

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

1-year chart of Boardwalk (NYSE: BWP)

BWP has been trading mostly sideways over the past two months. While in the sideways range, the stock has formed a support area around $13 (green), and a level of resistance at $14 (red). At some point, the stock will have to break out of the current trading range.

The Tale of the Tape: BWP is trading within a sideways range. The possible long positions on the stock would be either on a pullback to the $13, or on a breakout above $14. The ideal short opportunity would be on a break below $13.

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