CNI getting ready to breakout?

V has created a couple of important price levels to watch. First off, the stock has formed a relatively clear resistance at $70 (red), which would also be a 52-week high breakout if V could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (green) over the last 5 months. These two levels combined have V stuck within a common chart pattern known as an ascending triangle. Eventually, V will have to break one of those (2) levels.

The Tale of the Tape:

V has an up trending support and a 52-week resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $70. A break below the up trending support could be an opportunity to enter a short trade.

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