Green Dot Corp. (GDOT) operates as a financial technology leader and bank holding company, which engages in the provision of prepaid cards, debit cards, checking accounts, secured credit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services. It operates through the following segments: Account Services; and Processing and Settlement Services. 

Take a look at the 1-year chart of Green Dot (NYSE: GDOT) below with my added notations:

Over the past 4 months, GDOT has formed a key level of resistance to watch at the $40 (red) mark. The stock looks as if it may be on its way back up to that level again, and a solid close above $40 should lead to higher prices for GDOT.

The Tale of the Tape: GDOT has a key level of resistance at $40. A long trade could be entered on a breakthrough of that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $40.

Don’t forget to join our Linkedin group by clicking the link below to get free trade ideas, updates and commentary:  Stock Trading & Investing for Everyone

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT

@cmtstockcoach

Want More Great Investing Ideas?

9 “BUY THE DIP” Growth Stocks for 2020

What If I Am Wrong About the Bear Market? Even stubborn bears need to contemplate why the market continues to rally above 3,000.

7 “Safe-Haven” Dividend Stocks for Turbulent Times

GDOT shares were trading at $39.51 per share on Monday morning, up $1.33 (+3.48%). Year-to-date, GDOT has gained 69.57%, versus a -4.86% rise in the benchmark S&P 500 index during the same period.

About the Author: christian

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...

More Resources for the Stocks in this Article