Avaya Holdings Corp (NYSE: AVYA)

Avaya Holdings Corp. is a global business communications company, which engages in the provision of business collaboration and communication solutions. It operates through the following segments: Products and Solutions and Services. 

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

1-year chart of Avaya (NYSE: AVYA)

Over the course of the past year, AVYA has formed a major level of resistance to watch at the $14.50 (red) mark. The stock looks as if it may be on its way back up to that level again. A solid close above $14.50 should lead to higher prices for AVYA.

The Tale of the Tape: AVYA has a key level of resistance at $14.50. A long trade could be entered on a breakthrough of that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $14.50.

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