Six Flags Entertainment Corp (NYSE: SIX)

Six Flags Entertainment Corp. engages in operating of theme parks. It operates under the brand name Six Flags, which offers state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets.

Take a look at the 1-year chart of Six Flags (NYSE: SIX) below with my added notations:

1-year chart of Six Flags (NYSE: SIX)

SIX has hit the $17.50 mark (red) multiple times as resistance over the past several weeks. The stock has recently made it up to that level again, and now could be looking to finally break higher. A solid close above $17.50 should lead to higher prices for SIX.

The Tale of the Tape: SIX has a key level of resistance at $17.50. 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 $17.50.

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