BRFS breaks support BRFS has been on an overall downtrend for all of 2015. This past November the stock started trading in a sideways pattern. While in that sideways move, the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. The BRFS rectangle pattern had formed a resistance at $15.50 (red), and a $14 support (green). At some point, the stock would have to break one of those two levels, and yesterday the stock broke the support.The Tale of the Tape: BRFS broke out of the bottom of its rectangle pattern. A short position could be entered at or near the $14 mark, with a stop placed above that level. A break back above $14 could negate the forecast for a lower move.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