T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 79.7 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices, as well as accessories that are manufactured by various suppliers.
Take a look at the 1-year chart of Mobile (NASDAQ: TMUS) below with the added notations:
Over the course of the past 2-3 months, TMUS has formed an important level to watch at the $70 (blue) mark. That level was resistance in January, support back in March, and now it is acting as a resistance on a rally back up to it.
The Tale of the Tape: TMUS has a key level at $70. A trader could enter a long position on a break back above that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a rally up to $70.
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