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Skyline Champion Corp. (NYSE: SKY) | The Mesh Report

Skyline Champion Corp. (NYSE: SKY)

Christian Tharp, CMT June 3, 2019 Comments Off on Skyline Champion Corp. (NYSE: SKY)

Skyline Champion Corporation operates as a factory-built housing company in North America. The company offers manufactured and modular homes, as well as park-models and modular buildings for the multi-family, hospitality, and senior and workforce housing sectors.

Take a look at the 1-year chart of Skyline (NYSE: SKY) below with my added notations:

After declining for the entire 2nd half of 2018, SKY rallied to the point of creating a key level of resistance at $22 (green). The stock then broke above that mark a couple of weeks ago, and is now pulling back. If SKY continues to fall, the $22 level should attempt to provide support for a higher move. 

The Tale of the Tape: SKY has a key level of resistance at $22. A long trade could be made on a pullback down to that mark with a stop set under it. Bearish trades could be made on a break back below $22. 

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!

Christian Tharp, CMT

@cmtstockcoach



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