Thomson Reuters Corporation (NYSE: TRI)

Thomson Reuters Corporation is a provider of information for the world’s businesses and professionals. The company is organized in four business units: Financial & Risk, a provider of news, information and analytics; Legal, a provider of critical information, decision support tools, software and services to legal, investigation, business and Government professionals worldwide; Tax & Accounting, a provider of integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and Government, and Intellectual Property & Science, a provider of intellectual property and scientific resources. Thomson Reuters’ corporate headquarters are located in New York, New York with key operations in the United Kingdom, India, Eagan, Minnesota and Stamford, Connecticut. It operates in over 100 countries.

To review Thomson’s stock, please take a look at the 1-year chart of TRI (Thomas Reuters Corporation) below with my added notations:

TRI has created a couple of important price levels to watch. First, the stock has formed a clear resistance at $30 (red), which would also be an 8-month high breakout if TRI could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (green) over the last 4 months. Eventually, the stock will have to break one of those (2) levels.

The Tale of the Tape: TRI has an up trending support and a clear $30 resistance level to watch. A long trade could be made on a pullback to the support, currently nearing $28, or on a breakout above $30. A break below the up trending support would be an opportunity to enter a short trade.

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