Celanese Corporation, a technology and specialty materials company, manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products worldwide.
Take a look at the 1-year chart of Celanese (NYSE: CE) below with the added notations:
After rallying to new highs towards the end of 2016, and into 2017, CE ended up stalling in March. From there, the stock created a 52-week high resistance at $92.50 (blue). Now that the stock has broken out above that level, $92.50 should provide support for a higher move.
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The Tale of the Tape: CE has a key level at $92.50. Traders could enter a long position on a test of $92.50, with a stop placed below that level. Traders that are bearish on the stock may want to enter a short position on a break below that level instead.
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!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach