Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through three segments: Business Bank, Retail Bank, and Wealth Management.
Take a look at the 1-year chart of Comerica (NYSE: CMA) below with my added notations:
Over the past couple of months, CMA has hit the $75 resistance (red) on multiple occasions. In addition, the stock is climbing a trend line of support (green) that has been tested repeatedly. Together, these two lines have formed an ascending triangle on CMA. Eventually the stock will have to break either the $75 resistance or the trendline.
Join our new Linkedin Group by clicking the link below:
The Tale of the Tape: CMA is winding up between two key levels. A long trade could be made at the triangle support or on a break above $75. A break below the trendline could 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!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach