Herbalife (NYSE: HLF)

Herbalife Ltd., a nutrition company, develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products. It offers science-based products in four principal categories, including weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition.

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

After hitting the $85 mark at the beginning of February, HLF fell back to the $78 area. The stock rallied from there, but stalled once again at the same $85 it hit earlier in the month. Now that HLF has broken above and held that level, $85 should provide support for higher prices.

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Tesla, Inc. designs, develops, manufactures, and sells electric vehicles and energy storage products in the United States, China, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. It primarily offers sedans and sport utility vehicles.

Take a look at the 1-year chart of Tesla (NASDAQ: TSLA) below with my added notations:

During the past five months, TSLA has formed a clear level of resistance to watch at the $360 (red) mark. The stock has tested that mark multiple times since the beginning of October. A solid close above that $360 level would most likely lead to higher prices for TSLA.

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O’Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States.

Take a look at the 1-year chart of O’Reilly (NASDAQ: ORLY) with the added notations:

ORLY has a key level of support at $240 (green).  The stock looks as if its on its way back down to that level again, and traders could expect a bounce if it does. However, if the $240 support level were to break, lower prices should follow.

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American Airlines (NASDAQ: AAL)

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. It provides scheduled air transportation services for passengers and cargo. As of December 31, 2016, the company operated a mainline fleet of 930 aircraft. It serves 350 destinations in approximately 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, and Phoenix, as well as in Washington, D.C.

Take a look at the 1-year chart of American (NASDAQ: AAL) with the added notations:

From the end of December through January, AAL had formed a key level of support at $52 (red). The first week of February saw the stock break below that support. Not only did that mean lower prices for AAL, but also the $52 level should most likely act as resistance on future rallies, as it has done a few times already.


The Tale of the Tape: AAL broke a key level of support at $152. A trader could enter a short position on any rallies up to or near $52 with a stop placed above the level. If the stock were to break back above the $52 level, a long position might be entered 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!

Good luck!

Christian Tharp, CMT


Simmons First National Corporation (NASDAQ: SFNC)

Simmons First National Corporation operates as a bank holding company for Simmons Bank that provides financial services to individuals and businesses.

Take a look at the 1-year chart of Simmons (NASDAQ: SFNC) below with added notations:

SFNC has been repeatedly stalling at the same resistance of $30 (red) for several months now. The stock has recently turned higher, and is currently sitting just under that level now. A solid close above the $30 mark should lead to another leg higher for SFNC.

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