News Corp. (NWS) heads toward key support level

News Corp. (NASDAQ: NWS) engages in the creation and distribution of media, news, education, and information services. It operates through the following segments: News and Information Services, Book Publishing, Digital Real Estate Services, Subscription Video Services, and Other.

Take a look at the 1-year chart of News Corp. with added notations…

NWS has created a key level of support at the $21 (green) mark over the past couple of months. The stock is seemingly on its way back down to that $21 level again, thus a bounce may follow. However, if the support were to break, lower prices will likely follow for NWS.

The Tale of the Tape: NWS has key support at $21. A trader could enter a long position at or around $21 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!

Good luck!

Christian Tharp, CMT