STOCKS

Tim Bourquin highlights this stock's latest test at longtime resistance, and two ways traders can approach it.

Piedmont Office Realty Trust (PDM) recently crossed above its 200-day moving average, and looks to be testing a price level it previously tested no less than four times since late April.

Here is a recent daily chart:

chart
Click to Enlarge

Traders can look at this in two ways:

  1. An aggressive trader can short this stock into resistance at around $17.50 if they believe it will, once again, fail to break through that level.

  2. Breakout traders can wait for a closing daily bar above $17.50 and go long with a stop around $17.25 (depending on your risk tolerances).

Looking back further on a weekly chart, the previous high of just under $20 will make for the next resistance level.

chart
Click to Enlarge

If it breaks through that as well, the sky is the limit and a trailing stop of around 50 cents would be appropriate.

Tim Bourquin is the co-founder of the Traders Expo and the Forex & Options Expo.

Tickers Mentioned: Tickers: PDM

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