Trading AMG on the 10’sAMG had been in a downtrend all the way into February before finally starting its current rally. During that overall period of time, the stock has had a tendency to create support and resistance levels at the increments of $10 (blue). Even now, the most recent level of resistance was at $180, and the most recent support has been $170. Before that, the $160 mark was support. The Tale of the Tape: AMG tends to react to each $10 level. A long trade could be made on a beak through $180, or on a pullback to $170, with a stop placed under the level of entry. A short trade could be made on a break below $170, or on a rally up to $180.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, CMT@cmtstockcoach