Beyond The Biotech Space - Range Resources Corp. (NYSE: RRC)

RRC sits on support

Like most energy names, RRC declined persistently into the beginning of the year.

The stock then formed a double bottom price pattern, and then confirmed that pattern in April. The double bottom pattern, and confirmation, formed a $55 price level (blue) that has become important to the stock. Not only was the $55 mark the resistance point between the two bottoms, but that level was also support after the stock broke higher in April.

The Tale of the Tape:

RRC has a key level at $55. A trader could enter a long position on a pullback down to $55 with a stop placed under the level. However, if the stock were to break back below $55, a short trade could be made 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

@TraderBiotech

Posted to The Biotech Trader on Jun 01, 2015 — 8:06 AM
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