Simmons First National Corp. (SFNC) Takes Our $20 Resistance
Simmons First National Corp. is a financial holding company, which engages in the provision of banking and other financial products and services to individual and corporate customers. It conducts banking operations in communities throughout Arkansas, Colorado, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas…
Take a look at the 1-year chart of Simmons (NASDAQ: SFNC) below with my added notations:
SFNC had formed a key level of resistance at $20 (green) during the past several months. However, the stock broke through that resistance on Monday. If SFNC comes back down to that $20 level, which could now act as support, a bounce might be expected.
A long trade could be entered on a pull back down to that level. However, a break back below $20 could negate the forecast for a higher move and would 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!
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