Today’s Big Stock: Harsco Corporation (NYSE: HSC)

Harsco Corporation is a multinational provider of industrial services and engineered products serving global industries. The company operates in fits segments: Harsco Metals & Minerals, Harsco Infrastructure, Harsco Rail and Harsco Industrial. Harsco has locations in over 50 countries, including the United States. The company’s lines of business and related principal business include Outsourced, on-site services to steel mills and other metals producers; resource recovery technologies for the re-use of industrial waste stream by-products; industrial abrasives and roofing granules; engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales; railway track maintenance services and equipment, industrial grating products; air-cooled heat exchangers, and heat transfer products.

To review Harsco’s stock, please take a look at the 1-year chart of HSC (Harsco Corporation) below with my added notations:

HSC has created a couple of important price levels to watch. First, HSC has formed a clear resistance at $24 (navy), which would also be a 7-month high breakout if HSC could manage to move above it. In addition, the stock has been climbing a 6-month, up-trending support level (red), which has now been tested on (6) separate occasions. Eventually, the stock will have to break one of those (2) levels.

The Tale of the Tape: HSC has an up trending support and a clear $24 resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $24. A break below the up trending support would be an opportunity to enter a short trade.

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

Today’s Big Stock: Medifast, Inc (NYSE: MED)

Medifast, Inc. is engaged in the production, distribution, and sale of weight management and disease management products and other consumable health and diet products. The product lines include weight and disease management, meal replacement, and vitamins. The company offers a range of weight and disease management products under the Medifast and Essential brand and for select private label customers. The Medifast line includes Medifast 55 Shakes, Medifast 70 Shakes, Medifast Plus for Appetite Suppression Shakes, Medifast Plus for Women’s Health Shakes, Medifast Plus for Diabetics Shakes, Medifast Plus for Joint Health Shakes, Medifast Plus for Coronary Health Shakes and Essential 1 Calorie Burn Drinks. The company’s operations are primarily conducted through five of its wholly owned subsidiaries: Jason Pharmaceuticals, Inc., Take Shape for Life, Inc., Jason Enterprises, Inc., Jason Properties, LLC and Seven Crondall, LLC.

To review Medifast’s stock, please take a look at the 1-year chart of MED (Medifast, Inc.) below with my added notations:

MED has created a couple of important price levels to watch. First, MED has formed a clear resistance at $18 (navy), which would also be an 8-month high breakout if MED could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (blue) over the last 4+ months. Eventually, the stock will have to break one of those (2) levels.

The Tale of the Tape: MED has an up trending support and a clear $18 resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $18. A break below the up trending support would be an opportunity to enter a short trade.

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

Today’s Big Stock: Freescale Semiconductor Holdings I, Ltd (NYSE: FSL)

Freescale Semiconductor Holdings I, Ltd is an embedded processing semiconductors and solutions provider. Freescale’s product portfolio falls into three primary groupings: Microcontroller Solutions, Networking and Multimedia and Radio Frequency, Analog and Sensor. The company sells its products directly to original equipment manufacturers, distributors, original design manufacturers and contract manufacturers through its global direct sales force. Its embedded processor products include microcontrollers, single- and multi-core microprocessors, applications processors and digital signal processors. The Company also offers semiconductor products, including radio frequency, power management, analog, mixed-signal devices and sensors.

Please take a look at the 10-month chart of FSL (Freescale Semiconductor Holdings I, Ltd) below with my added notations:

Over the last 10 months, FSL has seemed to find support or resistance on or at the increments of $2. First, notice the February resistance at $18(green). Next, you can see the most recent $16 level (red). Lastly, the level of $14 level (navy) has been either support or resistance throughout the entire duration of the chart. The nice thing about FSL is that it shows you how to trade it no matter what direction the market moves. If you like the short side of the market, you could either short FSL on rallies up to a $2 level or on any breakdowns of them. If you want a long play instead, you could buy FSL on a pullback to a $2 level or on any breakout through one of those levels.

The Tale of the Tape: FSL finds the increments of $2 important. Currently, the levels to watch are $14, $16, and $18. If FSL breaks above $16, you could enter a long position. However, if you are bearish on the market and FSL rallies back up to $16, you could enter a short play instead. You could also buy FSL if it comes down to $14, or short the stock if it breaks that $14 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

Today’s Big Stock: Devon Energy Corporation (NYSE: DVN)

Devon Energy Corporation is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids. Devon’s operations are concentrated in North American onshore areas in the United States and Canada. It also owns natural gas pipelines, plants and treatment facilities in many of its producing areas. Devon is engaged in the commercial development of natural gas from shale and coaled formations, and it is a using steam to produce oil from the Canadian oil sands. During the year 2011, the company drilled 1089 wells in the United States and 1045 wells in Canada.

Please take a look at the 1-year chart of DVN (Devon Energy Corporation) below with my added notations:

Over the last 8 months, DVN has formed a couple of important price levels to watch. First is the $70 level. As you can see from the chart above, $70 was a key resistance (red) in August and November. As expected, that same $70 level has now become support (green). Also worth noting is the up trending support level (blue).  Any (2) points can start a trendline, but it is the 3rd test and beyond that confirm its importance. This level has been tested (4) times and seems to be approaching $70 as well.

The Tale of the Tape: DVN has formed an important price level at $70. A long trade could be placed on any pullbacks to the $70 level with a stop placed under that level. IF the stock were to break below $70, a short trade would be advised with a stop placed above the level.

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

Today’s Big Stock: Petroleo Brasileiro SA Petrobras (NYSE: PBR-A)

Petroleo Brasileiro SA Petrobras is a Brazil-based integrated oil and gas company. The company divides its activities into six segments: Exploration and Production; Provision; Gas and Energy; Biofuel; Distribution, and International. Directly or through its subsidiaries, Petrobras is engaged in the research, extraction, refining, processing, trade and transport of oil from wells, shale and other rocks, its derivatives, natural gas and other liquid hydrocarbons, as well as in activities related to energy, development, production, transport, distribution and commercialization of energy. The company is active in Brazil and in 24 countries abroad, with projects situated on five continents. As of December 31, 2011, the company owned 132 concession contracts for 194 exploration blocks and had a number of subsidiaries, including Petrobras Quimica SA, Petrobras Distribuidora SA, Braspetro Oil Services Company, Braspetro Oil Company, among others.

Please take a look at the 1 yr. chart of PBR-A (Petroleo Brasileiro SA) that I have shown below with my added notations:

 

 

PBR-A has formed a nice Channel (up) chart pattern over the last 7 months. A Channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to trend lines, I always tell my students that any (2) points can start a trend line, but a 3rd or more confirms it. You can see that PBR-A has (4) points of Channel resistance (red) and (5) points of Channel support (blue).  Always remember that after the 2nd test of each of these trend lines, the market decided they were important trend lines, not me.  Following the PBR-A Channel can provide you with both long and short trading opportunities.

The Tale of the Tape: PBR-A has formed a common pattern know as a Channel, in this case, an up Channel. A long opportunity could be entered on a pullback to the Channel support, which at this point seems to be around $26. Short trades could be entered at Channel resistance OR if PBR-A 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