Interface, Inc. is a flooring company, which offers carpet tile & resilient flooring, including luxury vinyl tile and rubber flooring products. The firm designs, manufactures and sells modular carpet, manufactured for the commercial and institutional markets under the interface brand, and for consumer markets as FLOR modular carpets.

Take a look at the 1-year chart Interface (NASDAQ: TILE) below with my added notations:

TILE had formed a key level of resistance at the $10 level (green) over the past several weeks. The stock broke through that resistance on Friday. If TILE comes back down to that $10 level, which should now act as support, a bounce could be expected. Regardless, higher prices, overall, should be expected.

The Tale of the Tape: TILE broke through its key level of resistance at $10. A long trade could be entered on a pull back down to that level. However, a break back below $10 could negate the forecast for a higher move and would be an opportunity to get short the stock.

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

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TILE shares were trading at $9.88 per share on Tuesday morning, down $0.72 (-6.79%). Year-to-date, TILE has declined -39.82%, versus a -0.14% 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...

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