Jacobs Engineering Group Inc (NYSE: JEC)

Jacobs Engineering Group Inc. provides technical, professional, and construction services.

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

1-year chart of Jacobs (NYSE: JEC)

Over the course of the past 3 months, JEC has formed an important level to watch at $75 (blue). The mark has been support since mid-April, and it was also resistance back in February and March.

The Tale of the Tape: JEC has a key level at $75. A trader could enter a long position on a pullback down to 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 break below $75.

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