Dave & Buster’s Entertainment Inc (NASDAQ: PLAY)

Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events.

Take a look at the 1-year chart of Buster’s (NASDAQ: PLAY) below with the added notations:

Over the course of the past 2-3 months, PLAY has formed an important level to watch at $48 (blue). The mark was support in mid-January, resistance back in December, and now it is acting as a resistance on a rally back up to it.

The Tale of the Tape: PLAY has a key level at $48. A trader could enter a long position on a break back 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 up to $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