Why $70 Is This Stock’s “Magic” Number
Our stock today, Seagate (STX), has tested a key resistance level at $70, a level that has proved to be an important level in the past as you can see by the line drawn on the chart below. This implies that a break through that level could lead to a run up to $75, and beyond.
These levels stand out to us as traders as there has been multiple touches of this lines throughout the past, signaling that there is a lot of activity that takes place at this level. When the price reproaches this level later on, like it is nearing today, traders can reasonably expect that there is a high likelihood that there is some significant price action that will once again take place at this spot.
Traders with a plan to manage risk properly can take the long or short side of this trade, but that is likely to depend on what the rest of the market chooses to do today.
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