Wednesday, February 20, 2013

Barnes & Noble, Inc. (NYSE: BKS)

Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. It sells trade books, including hardcover and paperback consumer titles; mass market paperbacks, such as mystery, romance, science fiction, and other fiction; children's books; eBooks and other digital content; NOOK products comprising NOOK 1st Edition, NOOK Wi-Fi 1st Edition, NOOK Color, NOOK Simple Touch, NOOK Tablet, and NOOK Simple Touch with GlowLight eBook reader devices and related accessories; bargain books; magazines; gifts; cafe products and services; educational toys and games; music; and movies. The company sells its products directly to customers through its bookstores and on barnesandnoble.com. It also sells textbooks and course-related materials, emblematic apparel and gifts, trade books, school and dorm supplies, and convenience and cafe items in college and university campuses.
To analyze Barnes's stock for potential trading opportunities, please take a look at the 1-year chart of BKS (Barnes & Noble, Inc.) below with my added notations:
1-year chart of BKS (Barnes & Noble, Inc.) BKS has a key price level at $14. Not only can you see the $14 resistance (red) from back in April, but $14 has also acted as support (green) on multiple occasions. So, the $14 level is key to this stock. If you are bullish, you would want to buy the stock on a pullback to $14. However, if you are bearish, you might short BKS on a break of the $14 support.
The Tale of the Tape: BKS presents a couple of simple trading opportunities based on its key level of $14. A long position could be entered at the $14 support with a stop placed below that level, or a short play could be made on a break below $14 if that should happen.
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