Magnite, Inc. (MGNI) Starts to Fall
Magnite, Inc. (MGNI) provides a technology solution to automate the purchase and sale of digital advertising inventory for buyers and sellers. It features applications and services for digital advertising sellers including websites, mobile applications, and other digital media properties…
Take a look at the 1-year chart of Magnite (NASDAQ: MGNI) below with my added notations:
MGNI has formed key support at around $34 (green) over the past few months. In addition, the stock is also declining against a down trending resistance line (red). These two lines have MGNI stuck within a common pattern known as a descending triangle. Eventually, the stock will break out of it.
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!
Christian Tharp, CMT
Christian Tharp, CMT
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