Beam Global (BEEM) engages in the invention, design, engineering, manufacture, and sale of solar powered products. It offers solar powered products and proprietary technology solutions for electric vehicle charging infrastructure, out of home advertising platforms, and energy security and disaster preparedness…
Take a look at the 1-year chart of Beam (NASDAQ: BEEM) below with my added notations:
EEM had formed a key level of resistance at $37.5 (green) over the past several weeks, but the stock broke through that resistance on Tuesday. That break should lead to higher prices, overall, for the stock. If BEEM comes back down to that $37.5 level, which could now act as support, a bounce might be expected.
BEEM broke through its key level of resistance at $37.5. A long trade could be entered on a pull back down to that level. However, a break back below $37.5 could negate the forecast for a higher move and could also 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!
Christian Tharp, CMT