Covetrus, Inc. engages in developing technologies and services for animal health industry. It also provides products, software, and services to help drive improved patient health, strong client relationships, and successful financial outcomes for veterinary professionals.
Take a look at the 1-year chart of Covetrus (NASDAQ: CVET) below with my added notations:
CVET has hit the $15 mark (red) as resistance multiple times over the past several months. The stock has recently turned higher towards that level again, and now could be looking to finally break out. A solid close above $15 should lead to much higher prices for CVET.
The Tale of the Tape: CVET has a key level of resistance at $15. 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 $15.
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