Natera, Inc. (Nasdaq: NTRA)

Natera, Inc. engages in the discovery, development, and commercialization of genetic testing services. It offers Panorama Non-Invasive Prenatal Test, Horizon Carrier Screening, Spectrum Pre-implantation Genetic Screening and Spectrum Pre-implantation Genetic Diagnosis, Anora Products of Conception and Non-Invasive Paternity Testing.

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

NTRA has tried repeatedly to break the $38 resistance (red) multiple times over the past few months. The stock has recently turned down from that level again, and now could be looking to turn higher once more. A solid close above $38 should lead to much higher prices for NTRA.

The Tale of the Tape: NTRA has a key level of resistance at $38. 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 $38.

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