Easy Trade of the Day:
ROK looks for new highs
ROK has been in an overall uptrend since the beginning of the year. However, the stock has recently stalled, as ROK has repeatedly hit the same resistance at $120 (red). The stock is sitting just under that level now. A solid close above the $120 should lead to a significant leg higher for ROK.
The Tale of the Tape:
ROK has a 52-week resistance at $120. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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