When Alliance Data Systems (ADS) Moves Investors should Listen

March 07, 2022, 00:45 am ET, BY Christie- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

How do we know what is going on #behindthescenes of a company?  According to Stock Traders Daily, a 20-year #financialindustry innovator, the best way to do this to to watch the price action in the stock. The  Alliance Data Systems (NYSE: ADS) report below is a real world example. Included are trading plans for ADS, but this report is static. If you want an update, or a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for ADS

• Buy ADS slightly over 57.54 target 67.16 stop loss @ 57.37 Details

The technical summary data tells us to buy ADS near 57.54 with an upside target of 67.16. This data also tells us to set a stop loss @ 57.37 to protect against excessive loss in case the stock begins to move against the trade. 57.54 is the first level of support below 60.98 , and by rule, any test of support is a buy signal. In this case, support 57.54 would be being tested, so a buy signal would exist.

• Short ADS under 67.16, target 57.54, stop loss @ 67.35 Details

The technical summary data is suggesting a short of ADS as it gets near 67.16 with a downside target of 57.54. We should have a stop loss in place at 67.35though. 67.16 is the first level of resistance above 60.98, and by rule, any test of resistance is a short signal. In this case, if resistance 67.16 is being tested, so a short signal would exist.

Swing Trading Plans for ADS

• Buy ADS slightly over 63.53, target 67.16, Stop Loss @ 63.35 Details

If 63.53 begins to break higher, the technical summary data tells us to buy ADS just slightly over 63.53, with an upside target of 67.16. The data also tells us to set a stop loss @ 63.35 in case the stock turns against the trade. 63.53 is the first level of resistance above 60.98, and by rule, any break above resistance is a buy signal. In this case, 63.53, 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 63.53, target 59.70, Stop Loss @ 63.71. Details

The technical summary data is suggesting a short of ADS if it tests 63.53 with a downside target of 59.70. We should have a stop loss in place at 63.71 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, 63.53, 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 62.56, target 63.53, Stop Loss @ 62.41 Details

If 62.56 begins to break higher, the technical summary data tells us to buy ADS just slightly over 62.56, with an upside target of 63.53. The data also tells us to set a stop loss @ 62.41 in case the stock turns against the trade. 62.56 is the first level of resistance above 60.98, and by rule, any break above resistance is a buy signal. In this case, 62.56, 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 62.56, target 59.99, Stop Loss @ 62.71. Details

The technical summary data is suggesting a short of ADS if it tests 62.56 with a downside target of 59.99. We should have a stop loss in place at 62.71 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, 62.56, 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 March 07:

Term →	Near	Mid	Long
Rating	Weak	Weak	Weak
P1	0	0	57.54
P2	59.99	59.70	67.16
P3	62.56	63.53	77.44

Support and Resistance Plot Chart for ADS

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