SLM Corp. (SLM) Hits Major Wall $19

SLM Corp. engages in the provision and administration of education loans. Its services include private education loans, banking, college savings, and insurance services. 

Take a look at the 1-year chart of SLM Corp (NASDAQ: SLM) below with the added notations…

Chart of SLM provided by TradingView

SLM has been trading mostly sideway, overall, for the past few months. During that time, the stock has formed a strong wall of resistance at $19 (red). SLM has made it back up to the mark again, and a breakthrough could lead to another leg higher for the stock.

The Tale of the Tape: SLM has a key area of resistance at $19. A long trade could be entered on a breakthrough of that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $19.

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 

 

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