Tivity Health Inc (NASDAQ: TVTY)

Tivity Health, Inc. provides fitness and health improvement programs in the United States. The company offers SilverSneakers senior fitness program to the members of Medicare advantage, Medicare supplement; and Prime fitness, a fitness facility access program through commercial health plans and employers.

Take a look at the 1-year chart of Tivity (NASDAQ: TVTY) below with my added notations:

1-year chart of Tivity Health (NASDAQ: TVTY)

TVTY has now hit the $23 mark (red) as resistance multiple times over the past several months. The stock has recently turned down from that level again, but could be looking to finally break higher. A solid close above $23 should lead to much higher prices for TVTY.

The Tale of the Tape: TVTY has a key level of resistance at $23. A long trade could be entered on a hold above that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $23.

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