A New High for Evoqua (AQUA)

Evoqua Water Technologies Corp. is a holding company, which engages in the provision of water treatment solutions. It operates through the Integrated Solutions and Services and Applied Product Technologies business segments…

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

Chart of AQUA provided by TradingView

AQUA had formed a key level of resistance at $25 (red) over the past year. However, the stock broke through that resistance on Tuesday, and that should lead to higher prices, overall. If AQUA comes back down to that $25 level, which could now act as support, a bounce might be expected.

A long trade could be entered on a pull back down to that level. However, a break back below $25 could negate the forecast for a higher move and would be an opportunity to get short the stock.

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