DO’s key level at $20For the most part, DO has been in a slight, downward move over the past 7 months. During that time, the $20 price level has become very important to the stock, especially as a support. You will notice on the chart above that on 3 or 4 separate occasions the price of $20 has given DO a bounce. Now that the stock is on its way back up to that $20 level, traders could expect $20 to act as resistance.The Tale of the Tape: DO has a key level at $20. A trader could enter a long position on a break above $20 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made instead at the $20 resistance.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, CMThttps://twitter.com/cmtstockcoach!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs");