Climate Change Crisis Real Impact I Acquisition Corp. (CLII) is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses…
Take a look at the 1-year chart of Climate (NYSE: CLII) below with added notations…
After popping in a big way back in January, CLII fell down to an $11 support (green) that has since become a major level for the stock. Another rally could start from the stock’s current position, but a break of $11 likely means much lower prices for CLII.
A trader could enter a long position at or around $11 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.
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