MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. The company operates through four segments: Index, Analytics, ESG, and Real Estate.
Take a look at the 1-year chart of MSCI (NYSE: MSCI) below with added notations:
MSCI has stalled at the same $245 resistance area (red) multiple times over the past several months. The stock rallied big yesterday, and seems to be back on its way up to that $245 area again. A solid close above that resistance should lead to another leg higher for MSCI.
The Tale of the Tape: MSCI has a 52-week resistance area around $245. The possible long position on the stock would be on a breakout above that zone with a stop placed under it.
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