Jacobs Engineering Group Inc (NYSE: J)

Jacobs Engineering Group, Inc. engages in the provision of a diverse range of technical, professional, and construction services to industrial, commercial, and governmental clients. Jacobs provides professional services through two lines of businesses: Critical Mission Solutions, and People and Places Solutions.

Take a look at the 1-year chart of Jacobs (NYSE: J) below with added notations:

Over the past three months, J had run up against the $97.50 resistance mark on two separate occasions. Now that the stock has broken above that level, higher prices overall should continue.

The Tale of the Tape: J broke its 52-week resistance at $97.50. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $97.50 could negate the forecast for a move higher.

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