Thursday, Mar 16, 2017
 
 

RPM International Inc. (NYSE: RPM)

 

RPM International Inc. manufactures, markets, and sells specialty chemical products for industrial, specialty, and consumer markets worldwide.

Take a look at the 1-year chart of RPM (NYSE: RPM) below with added notations:

1-year chart of RPM (NYSE: RPM)

RPM peaked at $55 last September and then went on to lose almost 20 percent of its value. Once the stock bottomed in November, RPM rallied all the way back up to that same $55 level, and stalled again, thus creating an important 52-week high resistance level at that price. Now that RPM has broken above that mark, higher prices should continue.

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The Tale of the Tape: RPM broke its 52-week resistance at $55. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $55 could negate the forecast for a move higher.

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

Follow me on Twitter: @cmtstockcoach

 
 

Christian Tharp, CMT

Want to know which trades to make, how to manage your stops and when to exit your trades? As a CMT with over a decade worth of experience in trading & mentoring traders, I'd like to offer you the opportunity to let me help you overcome all of your obstacles.

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