PACCAR Inc (NASDAQ: PCAR)

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. The company operates in three segments: Truck, Parts, and Financial Services.

Take a look at the 1-year chart of PACCAR (NASDAQ: PCAR) below with added notations:

PCAR has stalled at the same $72 resistance area (red) multiple times over the past several months. The stock has been on a nonstop rally over the past week, and now sits right at that $72 area. A solid close above the resistance should lead to another leg higher for PCAR.

The Tale of the Tape: PCAR has a 52-week resistance area around $72. The possible long position on the stock would be on a breakout above that zone 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!

Good luck!
Christian Tharp, CMT