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Todays Big Stock Wealthpop News

This Bank Fails To Push Past Key Level…

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Banco Santander Chile SA engages in the provision of commercial and retail banking services. It operates through the following segments: Retail Banking, Middle-Market, Corporate & Investment Banking, and Other.

Take a look at the 6-month chart of Banco (NYSE: BSAC) below with the added notations:

Chart of BSAC provided by TradingView

BSAC has hit the $16 mark as resistance (yellow) on multiple occasions since mid-July. The stock has made it up to that mark to start the week but has now pulled back again. A break above $16 could open the door to higher prices for BSAC.

The Tale of the Tape: BSAC has an important level of resistance at $16. A long trade could be entered on a break through that level, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $16 area.

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 

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Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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