JACK testing $70 againAfter its sharp decline, JACK started trading in a somewhat sideways move towards the end of 2015. During that time, the stock created an important level of support at $70 (blue), which also acted as resistance a few weeks after the stock broke that support. Now, JACK is back up at that $70 level. A break above $70 should lead to higher prices for the stock.The Tale of the Tape: JACK has a key level at $70. A trader could enter a short position on any rallies up to or near $70 with a stop placed above the level. If the stock were to break back above the $70 level, a long position might be entered instead.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