WM close to a break

Over the last 6 months WM has been trending consistently higher, while also forming a nice trend line of support (green). 

Always remember that any (2) points can start a trend line, but it’s the 3^rd test and beyond that confirm its relevance. As you can see, the market deems WM’s trendline to be very important. In addition, the stock also has a key level of resistance at $55 (red).

The Tale of the Tape: 

WM has a trend line support and a $55 resistance. A long position could be entered on a break above $55, or on a pullback to the trendline, with a stop placed below the level of entry. A short position could be entered if WM were to break below trendline.

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!

The Biotech Trader