This Tech Stock Makes Failed Attempt To Break This Key Price
Seagate Technology Holdings Plc operates as holding company that is engaged in the development, production, and distribution of data storage products and electronic data storage solutions. Its products include hard disk drives, solid state hybrid drives, solid state drives, peripheral component interconnect express cards, serial advanced technology attachment controllers, storage subsystems and computing solutions.
Take a look at the 1-year chart of Seagate (STX) below with the added notations:
Chart of STX provided by TradingView
STX has hit the $58 area as resistance (yellow) on multiple occasions over the past few weeks. After pulling lower after the most recent test of $58, the stock looks as if it may be trying to head back up there. A break above $58 could open the door to possibly much higher prices.
The Tale of the Tape: STX has an important resistance at $58. A long trade could be entered on a break through $58, 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 $58 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…
Christian Tharp, CMT
Do not trade options until you watch my urgent message: