Portland General Electric Co. (NYSE: POR)

Portland General Electric Co. is a vertically integrated electric utility company, which engages in the generation, purchase, transmission, distribution, and retail of electricity. The firm sells electricity and natural gas in the wholesale market to utilities, brokers, and power marketers.

Take a look at the 1-year chart of Portland (NYSE: POR) with the added notations:

POR has formed an important level of support at $54 (green) during the past several months.  The stock looks like it might be coming back down to that level again, and traders could expect some sort of a bounce, if it does. However, if the $54 support level were to break, lower prices should follow for POR.

The Tale of the Tape: POR has key support at $54. A trader could enter a long position at or around $54 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

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