BB&T Corporation (NYSE: BBT)

BB&T Corporation operates as a financial holding company that provides various banking and trust services for small and mid-size businesses, public agencies, local governments, and individuals.

Take a look at the 1-year chart of BB&T (NYSE: BBT) below with the added notations:

BBT has been rallying along with the market during the past week and has now made its way back up to a key level of $50 (blue). Not only did the stock find support at that mark for 8 straight months, but $50 has also been hit as resistance there earlier this month and back in December. The $50 mark should be an inflection point for BBT in the coming days.

The Tale of the Tape: BBT has a key level at $50. A trader could enter a long position on a break above that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a rally back up to $50.

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