Steris is a U.K.-based medical device company focused on sterilization services and infection prevention. The company is the global leader in contract sterilization services, ensuring the safe delivery of single-use and implantable medical equipment to hospitals around the world.
Take a look at the 1-year chart of Steris (NYSE: STE) below with added notations:
STE has hit the same $155 resistance area on multiple occasions over the past several months. The stock now sits just a couple dollars below that level. A solid close above $155 will likely lead to another leg higher for STE.
The Tale of the Tape: STE has a key 52-week resistance at $155. A possible long position on the stock would be on a breakout above that level with a stop placed under it.
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!
Christian Tharp, CMT