Christian Tharp, CMT
All posts from Christian Tharp, CMT
Christian Tharp, CMT in Trading Made Simple,

Easy Trade of the Day:

CTRP pops higher

Over the past 3 months, CTRP has hit the $45 level (green) as resistance on several different occasions. In addition, the stock has been climbing a trend line of support (blue) since mid-February. Eventually, the stock had to break either the $45 resistance or the triangle support, and yesterday it broke resistance.

The Tale of the Tape

CTRP broke its triangle resistance. A long trade could be made at the $45 level with a stop placed underneath it. A break back below the $45 mark, and trendline 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