Can NBR break higher?

Starting in July, NBR declined steadily into December, and from there the stock started a 4-month, sideways move. 

Starting in July, NBR declined steadily into December, and from there the stock started a 4-month, sideways move. During that sideways move, NBR has created an obvious resistance at $14 (blue). A break above that $14 level should mean higher prices for the stock.

The Tale of the Tape: 

NBR has a key level of resistance at $14. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $14.

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