Energizer Holdings Inc (NYSE: ENR)

Energizer Holdings, Inc. manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. The company offers lithium, performance alkaline, alkaline, carbon zinc, zinc air, nickel metal hydride, and silver oxide batteries; and hearing aid batteries, as well as primary rechargeable options under the Energizer and Eveready brands. It also provides headlights, lanterns, kid’s lights, and area lights, as well as flashlights under the Hard Case, Dolphin, and WeatherReady brands.

Take a look at the 1-year chart of Energizer (NYSE: ENR) below with added notations:

1-year chart of Energizer (NYSE: ENR)

ENR has been trading mostly sideways over the past 2-3 months. While in the sideways range, the stock has formed a clear support at $48 (green) and a resistance area around $52 (red). At some point, the stock will have to break out of the current trading range.

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The Tale of the Tape:: ENR is trading within a small sideways range. The possible long positions on the stock would be either on a pullback to $48 or on a breakout above $52. The ideal short opportunity would be on a break below $48.

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

Follow me on Twitter: @cmtstockcoach