Why $70 Is This Stock’s “Magic” Number
By: Christian Tharp, CMT
Our stock today, Seagate (STX), has tested a key resistance level at $70, a level that has proved to be an important level in the past as you can see by the line drawn on the chart below.
This implies that a break through that level could lead to a run up to $75, and beyond.
These levels stand out to us as traders as there has been multiple touches of this lines throughout the past, signaling that there is a lot of activity that takes place at this level.
When the price reproaches this level later on, like it is nearing today, traders can reasonably expect that there is a high likelihood that there is some significant price action that will once again take place at this spot.
Traders with a plan to manage risk properly can take the long or short side of this trade, but that is likely to depend on…
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