Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 48 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.
Take a look at the 1-year chart of Equinix (NASDAQ: EQIX) below with the added notations:
EQIX has been trending lower since its November peak, and has now seemingly moved into a sideways range. However, during the sideways trend, the level of $400 (blue) has acted as both support and resistance on multiple occasions. Now that the stock is rallying back up to $400 again, that mark should act as resistance.
The Tale of the Tape: EQIX has a key level at $400. Traders could enter a short position on a test of $400, with a stop placed above the level. However, traders that are bullish on the stock might have an opportunity to get long if EQIX were to break back above $400 again.
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