JELD-WEN Holding, Inc. engages in the manufacture and sale of doors, windows, and related products. It designs, produces, and distributes interior and exterior doors, wood, vinyl, aluminum windows, and related products for construction, repair, and remodeling of residential homes and non-residential buildings. It oeprates through the following geographical segments: North America, Europe, and Australasia.
Take a look at the 1-year chart of JELD (NYSE: JELD) below with added notations:
JELD had hit the $22 mark as resistance several times over the past year. Now that the stock has popped up through that resistance, another leg higher should be underway. A pullback down to $22 will likely provide some support.
The Tale of the Tape: JELD broke a key 52-week resistance at $22. A possible long position on the stock would be on a pullback down to that level, with a stop placed under it. A break back below $22 could negate the forecast for a higher move.
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