The MRC Global (MRC) Sandwich | The Mesh Report

The MRC Global (MRC) Sandwich

Christian Tharp, CMT May 3, 2022 Comments Off on The MRC Global (MRC) Sandwich

MRC Global, Inc. is a holding company engaged in the distribution of pipes, valves, fittings, and other infrastructure products and services to the energy, industrial, and gas utility end-markets.

Take a look at the 1-year chart of MRC (NYSE: MRC) below with the added notations…

Chart of MRC provided by TradingView

During the past two months, MRC has formed a couple of important levels worth keeping an eye on. The first is the $12.50 mark (red), which has been resistance for the stock multiple times. The other level to watch is the support of $11 (green). At some point, MRC will retest one of those prices.

The Tale of the Tape: MRC has key levels at $11 and $12.50. A trader could enter a long position on a pullback down to $11, or on a break above $12.50, with a stop placed below the level of entry. However, if traders are bearish on the stock, a short trade could be made on a rally up to $12.50, or on a break below $11.

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 


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