Vocera Communications, Inc. provides secure, integrated, and intelligent communication and workflow solutions that empowers mobile workers in healthcare, hospitality, energy, and other mission-critical mobile work environments in the United States and internationally.
Take a look at the 1-year chart of Vocera (NYSE: VCRA) with the added notations:
VCRA has formed a major level of support at $30 (green) over the past eight months. Now that the stock has come back down to that $30 level, traders should be able to expect some sort of a bounce. However, if the $30 support were to break, lower prices should follow for VCRA.
The Tale of the Tape: VCRA has key support at $30. A trader could enter a long position at or around $30 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.
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!
Christian Tharp, CMT