Alliance Data Systems ADS Investment Analysis

January 13, 2022, 02:15 am ET, BY Jeff W.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

With an objective approach to Alliance Data Systems (NYSE: ADS), Stock Traders Daily attempts to go with the flow of the market by utilizing a combination of market analysis and stock analysis.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for ADS change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if ADS is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for ADS too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for ADS

• NONE. Details

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breaks higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

• Short ADS under 75.11, target n/a, stop loss @ 75.33 Details

The technical summary data is suggesting a short of ADS as it gets near 75.11, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 75.33. 75.11 is the first level of resistance above 71.94, and by rule, any test of resistance is a short signal. In this case, if resistance 75.11 is being tested, so a short signal would exist.

Swing Trading Plans for ADS

• Buy ADS slightly over 73.47, target 75.11, Stop Loss @ 73.26 Details

If 73.47 begins to break higher, the technical summary data tells us to buy ADS just slightly over 73.47, with an upside target of 75.11. The data also tells us to set a stop loss @ 73.26 in case the stock turns against the trade. 73.47 is the first level of resistance above 71.94, and by rule, any break above resistance is a buy signal. In this case, 73.47, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ADS near 73.47, target 70.57, Stop Loss @ 73.68. Details

The technical summary data is suggesting a short of ADS if it tests 73.47 with a downside target of 70.57. We should have a stop loss in place at 73.68 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 73.47, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for ADS

• Buy ADS slightly over 72.99, target 73.47, Stop Loss @ 72.82 Details

If 72.99 begins to break higher, the technical summary data tells us to buy ADS just slightly over 72.99, with an upside target of 73.47. The data also tells us to set a stop loss @ 72.82 in case the stock turns against the trade. 72.99 is the first level of resistance above 71.94, and by rule, any break above resistance is a buy signal. In this case, 72.99, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ADS near 72.99, target 71.80, Stop Loss @ 73.16. Details

The technical summary data is suggesting a short of ADS if it tests 72.99 with a downside target of 71.80. We should have a stop loss in place at 73.16 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 72.99, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

ADS Ratings for January 13:

Term →	Near	Mid	Long
Rating	Strong	Weak	Neutral
P1	0	0	75.11
P2	71.80	70.57	93.77
P3	72.99	73.47	113.78

Support and Resistance Plot Chart for ADS

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