Social Media Approaches Major Resistance Level
Sprout Social, Inc. provides online social media management tools for businesses. It offers communication tools, contact management, lead generation, and analytics services. The company offers solutions for enterprises, agencies, small businesses, customer service, social media marketing, and employee advocacy sectors.
Take a look at the 1-year chart of Sprout (SPT) below with the added notations:
Chart of SPT provided by TradingView
Over the course of the past year, SPT has formed a major level to watch at the $70 (blue) mark, as that level has provided both support and resistance on many occasions. The stock is sitting just below that $70 level now, and a break above it could mean much higher prices.
The Tale of the Tape: SPT has a key level at $70. A trader could enter a long position on a break above that level with a stop placed below it. However, if traders are bearish on the stock, a short trade could be made on rallies up to $70 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…
Christian Tharp, CMT
Do not trade options until you watch my urgent message: