DowDuPont Inc (NYSE: DWDP)

DowDuPont Inc., through its subsidiaries, engages in agriculture, materials science, and specialty products businesses in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.

Take a look at the 1-year chart of DowDuPont Inc (NYSE: DWDP) below with my added notations:

1-year chart of First (NYSE: DWDP)

During the past three months, DWDP has formed an important resistance to watch at $38 (red) mark. The stock has made its way back to the level again, and a close above that $38 level should lead to higher prices, most likely a run up to the next level of resistance at $40 (blue).

The Tale of the Tape: DWDP has a key level of resistance at $38. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $38.

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