Chart of the Day: LiveRamp Holdings (RAMP)

LiveRamp Holdings, Inc. is a global technology company. It is engaged in providing identity platform leveraged by brands and partners to deliver innovative products and exceptional experiences…

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

Chart of RAMP provided by TradingView

After stalling at $51 (red) a couple of times last year, RAMP declined for three straight months. The stock started to recover in March, eventually hitting the $51 resistance level again.  Now that RAMP has broken above the resistance, higher prices should follow, and $51 may now become the new support.

The Tale of the Tape: RAMP broke its 52-week resistance of $51. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A failure to hold $51 could negate the expectations for a higher move.

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