Keysight Technologies Inc (NYSE: KEYS)

Keysight Technologies, Inc. engages in the provision of electronic design and test solutions that are used in the design, development, manufacture, installation, deployment, validation, optimization and secure operation of electronics systems to communications, networking and electronics industries. It operates through the following segments: Communications Solutions Group, Electronic Industrial Solutions Group, and Ixia Solutions Group.

Take a look at the 1-year chart of Keysight (NYSE: KEYS) with the added notations:

KEYS has formed an important level of support at $100 (green) over the past three months. The stock had rallied to new 52-week highs back in November, but now that it appears as if it is back on the decline, the $100 level could act as support again. If the $100 support were to break, lower prices should follow for KEYS.

The Tale of the Tape: KEYS has key support at $100. A trader could enter a long position at or around $100 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!

Good luck!
Christian Tharp, CMT