Black Stone Minerals (BSM) Bounces Off Trendline
Black Stone Minerals LP is an exploration company. The firm engages in the exploration of oil and natural gas minerals. It focuses on the operation of Louisiana-Mississippi Salt Basins, Western Gulf, Permian Basin, Palo Duro Basin, East Texas Basin, Anadarko Basin, Appalachian Basin, Arkoma Basin, Bend Arch-Fort Worth, and Southwestern Wyoming.
Take a look at the 1-year chart of Moderna (BSM) below with the added notations:
Chart of BSM provided by TradingView
BSM has been trending higher over the past several weeks, while also forming a nice trend line of support (green) along the way. Any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its relevance. A pullback to the BSM line provides trading opportunities, one way or another.
The Tale of the Tape: BSM has formed a trend line of support. A long position could be entered on a pullback to the trendline, with a stop placed below the level of entry. A short position could be considered if BSM were to break below its trendline.
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