Children’s Place Inc (NASDAQ: PLCE)
About The Children’s Place, Inc.
The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. It also designs, contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Place and Baby Place.
Take a look at the 1-year chart of Place (NASDAQ: PLCE) with the added notations:
During the past three months, PLCE had formed a very important level of support at $70 (red). Last week saw the stock break below that support. Not only does that imply lower prices for PLCE, but the $70 level should now act as resistance on any future rallies.
The Tale of the Tape: PLCE broke a key level of support at $70. A trader could enter a short position on any rallies up to or near $70 with a stop placed above the level. If the stock were to break back above the $70 level, a long position might be entered instead.
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
(Want free training resources? Check our our training section for videos and tips!)
Christian Tharp, CMT
Our Experts Found 9 Stocks You Will Hold Forever
With individual stock selection now more critical than ever, this report is designed to bring you some of our top ideas for the year ahead. One of the companies highlighted in this report controls the smartphone market and now has its sights set on owning a bigger technology. It has the potential to be the most valuable stock in the history of investing. You need to find out the name of this company before the rest of the market does. This Report Is Completely Free, Download Your Copy Today