This Media Stock Is Testing Support
Ryan Mallory | Jul 18, 2016 03:16PM ET
With three days of sideways action on the S&P 500, I am focusing on stocks that have either bull-flagged its price action or pulled back to a key support level following a massive move higher.
RR Donnelley & Sons (NASDAQ:RRD) caught my eye on a stiff pullback to the breakout level it soared through just a little over a week ago. Now it's testing support at the $17.50-80 level, while holding the 10-day moving average.
If this bounce holds, I think there's a strong chance that RRD will blow past the $20 price point.
There is support under $17.50 if that support level doesn't hold, at the $16.80 level. If it doesn't hold, then get out and get out fast.
Managing risk is key to successful trading and when it cannot hold key price levels, you have no reason to stay in the trade.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.