Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs, manufactures, and supplies commercial aero structures worldwide. Spirit AeroSystems Holdings, Inc., through its subsidiaries, operates as a commercial aerospace original equipment manufacturer worldwide. The company operates through three segments: Fuselage Systems, Propulsion Systems, and Wing Systems.
Take a look at the 1-year chart of Spirit (NYSE: SPR) below with my added notations:
SPR has been trending higher for the past several months. Recently, the stock has created a 52-week high resistance level at $85 (red), while also climbing a short-term trendline of support (green). At some point, SPR will to have to break one of those two levels.
The Tale of the Tape: SPR is stuck between its $85 resistance and a trendline of support. A long trade could be made on a break above the $85 level, with a stop placed below that level.
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