Aecom (NYSE: ACM)

Aecom engages in the design, build, finance, and operation of infrastructure assets for governments, businesses and organizations. It operates through the following segments: Design and Consulting Services, Construction Services, Management Services, and Aecom Capital.

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

ACM has hit the same $44 resistance area on multiple occasions over the past couple of months. The stock now sits just a couple percentage points below that level. The stock closing above $44 will likely lead to another leg higher for ACM.

The Tale of the Tape: ACM has a key 52-week resistance barrier at $44. A possible long position on the stock would be on a breakout above that level 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!

Good luck!

Christian Tharp, CMT