Trimble Navigation Limited (NasdaqGS: TRMB)

Trimble Navigation Limited provides positioning, wireless, and software technology solutions. Trimble’s Engineering and Construction segment offers site positioning systems, construction asset management services, software, and wireless and Internet-based site communications infrastructure solutions. Its Field Solutions segment provides guidance and positioning systems, automated application systems, and information management solutions to improve crop performance, profitability and environmental quality. The company’s Mobile Solutions segment offers vehicle solutions, such as GPS receivers, business logic, sensor interfaces and wireless modems. Its Advanced Devices segment supplies global navigation satellite system modules, licensing and complementary technologies, and integrated sub-system solutions; supplies global positioning system receivers and embedded modules for aircraft navigation and timing applications; provides GPS-enabled cell phones for outdoor recreational activities. The company markets its products through dealers, distributors, and authorized representatives worldwide. Trimble Navigation Limited was founded in 1978 and is headquartered in Sunnyvale, California.

To analyze Trimble’s stock for potential trading opportunities, please take a look at the 1-year chart of TRMB (Trimble Navigation Limited) below with my added notations:

TRMB is currently trading between the levels of $45 and $50. The $45 level can be seen as not only a current support (blue), but it was also a 2-month resistance (green) back in December and January.  The $50 level (navy) was a brief support last month and has continued to act as resistance now that TRMB is below it. If the stock were to break back above the $50 level, the higher level at $55 (red) would be the next level of expected resistance

The Tale of the Tape: If TRMB rallies back up to $50, you could enter a short play. If it breaks above $50, you would certainly want to enter a long play. You could also buy TRMB if it comes back down to the $45 level, or short the stock if it breaks that $45 support.

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