This Bank Fails To Push Past Key Level… | The Mesh Report

This Bank Fails To Push Past Key Level…

Christian Tharp, CMT August 10, 2022 Comments Off on This Bank Fails To Push Past Key Level…

Banco Santander Chile SA engages in the provision of commercial and retail banking services. It operates through the following segments: Retail Banking, Middle-Market, Corporate & Investment Banking, and Other.

Take a look at the 6-month chart of Banco (NYSE: BSAC) below with the added notations:

Chart of BSAC provided by TradingView

BSAC has hit the $16 mark as resistance (yellow) on multiple occasions since mid-July. The stock has made it up to that mark to start the week but has now pulled back again. A break above $16 could open the door to higher prices for BSAC.

The Tale of the Tape: BSAC has an important level of resistance at $16. A long trade could be entered on a break through that level, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $16 area.

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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