Please take a look at the 1-year chart of MTDR (Matador Resources Company) below with my added notations:
MTDR had an amazing run from its low of $8 to its November peak at $24. Over the last 6 months the stock has created a key level of $18 (blue) that has been both support and prior resistance. In addition, the stock has been stalling at roughly the $21 area. At some point soon the stock will have to break one of those two levels.
The Tale of the Tape: MTDR has a key level of support at $18 and a $21 resistance. A long trade could be made at $18, or on a break through $21, with a stop placed below the level of entry. However, if the stock were to break below $18 traders might want to look to get short on the stock.
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