How the price action of Alliance Data Systems (ADS) is used to our Advantage

February 01, 2022, 15:00 pm ET, BY Scott B.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Our job as #investors is to pay attention to the #stocks we own.  Part of that involves looking at the #fundamentals, but half of the disclosure comes from looking at price action. The  Alliance Data Systems (NYSE: ADS) data table below can help you with price action, and we have more details too. Trading plans for ADS are shown here too; these plans are updated in real time for subscribers, where this report is static. If you want an update, or a report on a different stock, please get one here Unlimited Real Time Reports.

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 72.38, target n/a, stop loss @ 72.59 Details

The technical summary data is suggesting a short of ADS as it gets near 72.38, 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 72.59. 72.38 is the first level of resistance above 69.5, and by rule, any test of resistance is a short signal. In this case, if resistance 72.38 is being tested, so a short signal would exist.

Swing Trading Plans for ADS

• Buy ADS slightly over 72.38, target 90.78, Stop Loss @ 72.17 Details

If 72.38 begins to break higher, the technical summary data tells us to buy ADS just slightly over 72.38, with an upside target of 90.78. The data also tells us to set a stop loss @ 72.17 in case the stock turns against the trade. 72.38 is the first level of resistance above 69.5, and by rule, any break above resistance is a buy signal. In this case, 72.38, 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 72.38, target 67.58, Stop Loss @ 72.59. Details

The technical summary data is suggesting a short of ADS if it tests 72.38 with a downside target of 67.58. We should have a stop loss in place at 72.59 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, 72.38, 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 72.38, target 90.78, Stop Loss @ 72.21 Details

If 72.38 begins to break higher, the technical summary data tells us to buy ADS just slightly over 72.38, with an upside target of 90.78. The data also tells us to set a stop loss @ 72.21 in case the stock turns against the trade. 72.38 is the first level of resistance above 69.5, and by rule, any break above resistance is a buy signal. In this case, 72.38, 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 72.38, target 69.40, Stop Loss @ 72.55. Details

The technical summary data is suggesting a short of ADS if it tests 72.38 with a downside target of 69.40. We should have a stop loss in place at 72.55 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, 72.38, 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 February 01:

Term →	Near	Mid	Long
Rating	Strong	Weak	Weak
P1	0	0	72.38
P2	66.88	61.85	90.78
P3	69.40	67.58	110.43

Support and Resistance Plot Chart for ADS

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