Cadence Bancorp (NYSE: CADE)

Cadence Bancorporation operates as the bank holding company for Cadence Bank, N.A. that provides commercial banking products and services to businesses, high net worth individuals, business owners, and retail customers in the United States.

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

1-year chart of Cadence (NYSE: CADE)

Over the past 5 months, CADE has formed a trend line of support (green), which has been tested multiple times. The stock is currently sitting right on that line, and a bounce should be expected. A break of the trend line would most likely lead to lower prices for CADE.

The Tale of the Tape: CADE has a trend line of support. A long position could be entered on a pullback to the tend line, with a stop placed below the level of entry. A short position could be entered if CADE were to break below the line.

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