MAR descending

MAR has formed a support level near $77.50 (green)

MAR has formed a support level near $77.50 (green). In addition, the stock is declining against a short-term, down trending resistance level (red) over the past several of weeks. These two levels combined have MAR stuck within a common chart pattern known as a descending triangle. Eventually, the stock will have to break one of those levels.

The Tale of the Tape:

MAR has a down trending resistance and a $77.50 support level to watch. A long trade could be made on a breakout through the resistance or on a pullback to $77.50. A break below the $77.50 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!

The Biotech Trader

@TraderBiotech