Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. It operates through three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
Take a look at the 1-year chart of Agilent (NYSE: A) below with my added notations:
Over the past nine months, A has formed a trend line of resistance (red), which has been tested multiple times. The recent rally back up to that line could foreshadow an eventual decline, as happened on the previous tests of the trendline.
The Tale of the Tape: A has a trend line of resistance. A short position could be entered on a rally up to the trendline, with a stop placed above the level of entry.
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