Watch TSL for a pullback

TSL has been in mostly a sideways to down move over the last year. What has become clear over that time is that the $11 price (yellow) is very important to the stock.

Not only was $11 a key support last summer, but it was also a strong resistance for the stock over the last 4 months. Last week TSL broke above that $11 resistance and may now pull back to it as support.

The Tale of the Tape: 

TSL has a key level at $11. A trader could enter a long position on a pullback down to $11 with a stop placed under the level. However, a short trade could be made instead if the stock breaks back below $11.

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