SPN runs back to $23

SPN declined rapidly last fall, paused for a month or so, and then dropped again to its December low. 

Over that time the $23 price level (blue) has become very important to the stock. Not only was $23 a key support in October and November, but it has also been a tough resistance for the stock here as of late.

The Tale of the Tape: 

SPN has a key level at $23. A trader could enter a long position on a break above $23 with a stop placed under the level. However, if traders are bearish on SPN, a short trade could be made instead if the stock rallies up to $23.

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!

The Biotech Trader