Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through three segments: Business Bank, Retail Bank, and Wealth Management.
Take a look at the 1-year chart of Comerica (NYSE: CMA) below with the added notations:
Since December, CMA has been as high as $75, and as low as $65. During that time, the stock has created a key price level at $70 (blue) that has provided both support and resistance for CMA. Now that the stock appears to be pulling back down to that level again, traders could expect some sort of a bounce.
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The Tale of the Tape: CMA has a key level at $70. Traders could enter a long position on a test of $70, with a stop placed below that level. Traders that are bearish on the stock could enter a short position on a break below that level instead.
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