Type to search

Todays Big Stock Wealthpop News

Is This Tech Stock Ready To Make A Move?

Share

Fastly, Inc. provides real-time content delivery network services. It offers edge computing, edge delivery, edge security, edge applications like load balancing and image optimization, video on demand, and managed edge delivery.

Take a look at the 1-year chart of Edge (FSLY) below with the added notations:

Chart of FSLY provided by TradingView

FSLY has been declining for most of the past year and is now consolidating within a common chart pattern known as a symmetrical triangle, or pennant. A down trending resistance combined with an up-trending support forms the pattern (blue). Since there is no way to know which way the stock will break, some traders may wait for the breakout or breakdown before entering a trade.

The Tale of the Tape: FSLY has formed a consolidation pattern. A short trade could be made on a break of support or on a test of resistance. A long trade could be made at support or on a break through the triangle resistance.

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

ATTENTION READER!

Do not trade options until you watch my urgent message:

Learn how to use this simple, yet effective options strategy to become a better trader…

Tags:
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.

  • 1

Leave a Comment

Your email address will not be published. Required fields are marked *