Life Technologies Corporation is a global life sciences company. Life Technologies delivers a range of products and services, including systems, instruments, reagents, software, and custom services. Its portfolio of products include technologies for Polymerase Chain Reaction, sample preparation, cell culture, ribonucleic acid interference analysis, functional genomics research, proteomics and cell biology applications, capillary electrophoresis based sequencing, next generation sequencing, as well as clinical diagnostic applications, forensics, animal, food, pharmaceutical and water testing analysis. The company also provides its customers purchasing options through sales and service professionals, e-commerce capabilities and onsite supply center solutions.
To analyze Life Technologies’ stock for potential trading opportunities, please take a look at the 1-year chart of LIFE (Life Technologies Corporation) below with my added notations:
Prior to July, LIFE had a key support level at $50 (navy). Once the LIFE broke that level, the stock sold off drastically with the overall market. After moving mostly sideways from August though December, LIFE rallied back up to its previous breakdown level of $50 and resisted it as expected. Since January, the stock has been holding $45 (blue) as support.
The Tale of the Tape: LIFE is currently trading between its $45 and $50 price levels. A long position could be entered on a pullback to $45 or on a break above $50 with a stop placed below the level of entry. However, if you are bearish on the stock or overall market, a short trade could be made on a break below the $45 or on a test of the $50 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!
Christian Tharp, CMT