MRO reacts to the 2’sAlthough its overall trend is still down, MRO has doubled in price since February. During the August to present timeframe, the stock has had a tendency of creating support and resistance levels at the increments of $2 (blue). More specifically, the $10, $12 and $14 levels have been key. Even now the stock is pausing at $14. The Tale of the Tape: MRO tends to react to each $2 level. A long trade could be made on a break through $14, or on a pullback to $12, with a stop placed under the level of entry. A short trade could be made on a break below $12.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