Impinj, Inc. operates a platform that enables wireless connectivity to everyday items by delivering each item’s unique identity, location, and authenticity to business and consumer applications.
Take a look at the 1-year chart of Impinj (NASDAQ: PI) below with the added notations:
PI has been trending lower since its 2018 June peak, and has now seemingly moved into a sideways range. However, during the sideways trend, the level of $20 (green) has acted as both support and resistance on multiple occasions. Now that the stock has broken back above that $20 mark, that level should act as support.
The Tale of the Tape: PI has a key level at $20. Traders could enter a long position on a test of $20, with a stop placed below the level. However, traders that are bearish on the stock might have an opportunity to get short if PI were to break back below $20 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