PWR edges higher

After PWR’s choppy ride lower, the stock started a 4-month rally in December. 

Over the course of the rally, PWR has been climbing a nice trendline of support (green). That, combined with the stock’s key level at $30 (purple), has PWR stuck within an ascending triangle. At some point the stock will have to break one of the two levels created by the pattern.

The Tale of the Tape: 

PWR is trading within an ascending triangle. A long trade could be entered on a break above $30. However, a break below the trendline could be an opportunity to get short the stock.

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

@TraderBiotech