TPI Composites (TPIC) Looks To Break Through Resistance
TPI Composites, Inc. is a holding company, which engages in the manufacturing of composite wind blades for the wind energy market. It operates through the following segments: United States, Asia, Mexico, Europe, the Middle East & Africa, and India.
Take a look at the 1-year chart of TPI (NASDAQ: TPIC) below with the added notations:
Chart of TPIC provided by TradingView
TPIC had formed an important level of resistance at the $16 (blue) mark. The stock tested that level multiple times this year and finally broke above it last month. The stock pushed higher, as traders might expect, but has now pulled back to the level of $16. A rally should start from there, but if not, trouble could follow for TPIC.
The Tale of the Tape: TPIC broke a key a level of resistance at $16. A long trade could be entered now, or on a pullback down to the $16 area, with a protective stop set below the level of entry.
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