Aaron’s, Inc. operates as an omnichannel provider of lease-purchase solutions to underserved and credit-challenged customers. It operates in three segments: Progressive Leasing, Aaron’s Business, and DAMI.
Take a look at the 1-year chart of Aaron’s (NYSE: AAN) below with added notations:
AAN has hit the same $56 resistance (red) a couple of times during the past several months. The stock is now sitting just a couple of percentage points below that $56 level. A solid close above the resistance should lead to another leg higher for AAN.
The Tale of the Tape: AAN has a 52-week resistance at $56. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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