ATLS breaks back above $7.50

Like most energy related stocks, ATLS fell on hard times starting from the summer of last year. 

The stock tried to find support at $7.50, but that price eventually gave way to new lows as well. However, on Friday ATLS actually broke back above that prior level of support at $7.50. That break should mean higher prices for the stock in the short-term, at minimum.

The Tale of the Tape: 

ATLS had a key level of support at $7.50 that it has now broke back above. A trader could enter a long position at $7.50 with a stop placed under the level. If the stock were to break below $7.50 a short position could 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!

Good luck!

The Biotech Trader