Allegheny Technologies (ATI) Holds A Key Level

Allegheny Technologies, Inc. engages in the manufacture of specialty materials and components. It operates through the High Performance Materials and Components (HPMC) and Advanced Alloys & Solutions (AA&S) segments. 

Take a look at the 1-year chart of Allegheny (NYSE: ATI) below with my added notations…

Chart of ATI provided by TradingView

ATI has formed a small down channel over the past several weeks. A channel is formed through the combination of a trend line support that runs parallel to a trend line resistance.  ATI tested its channel support twice in as many days, holding the line each time. 

The Tale of the Tape: ATI has formed a down channel. A long trade could be entered on a pullback to the channel support, which is currently approaching $24, or on a break of channel resistance. Short trades could be entered at channel resistance or if the stock were to break below the channel support.

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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