DTE Energy Co (NYSE: DTE)

DTE Energy Co. operates as a diversified energy company, which engages in the provision of electricity and natural gas sales, distribution and storage services. It operates through the following segments: Electric, Gas, Non-Utility Operations, and Corporate & Other. 

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

1-year chart of DTE (NYSE: DTE)

Over the course of the past several weeks, DTE has formed an important level to watch at the $100 (red) mark. That level was support back in the beginning of March, and resistance at the end of that same month. The stock appears to be on its way back up to that level now.

The Tale of the Tape: DTE has a key level at $100. A trader could enter a long position on a break above that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a rally up to the $100 mark.

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