Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. It provides skin care systems and targeted treatment products, including ageLOC Me customized skin care systems, ageLOC Spa systems, and ageLOC Transformation anti-aging skin care systems; and Epoch products, as well as a range of other cosmetic, personal care, and hair care products.
Take a look at the 1-year chart of Nu Skin Enterprises (NYSE: NUS) below with my added notations:
Over the past five months, NUS has formed a clear level of resistance to watch at the $55 (red) level. The stock has tested that mark several times since mid-November without breaking through. A strong close above that $55 level would most likely lead to higher prices for NUS.
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The Tale of the Tape: NUS has a key level of resistance at $55. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $55.
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
Follow me on Twitter: @cmtstockcoach