Trimble Navigation Limited (NASDAQ: 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.

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:

1-year chart of TRMB (Trimble Navigation Limited)

TRMB is currently trading between the levels of $50 (navy) and $55 (red). The $50 level can be seen as not only a previous resistance, but it was also a brief support back in May. The $55 level is the 52-week high resistance from back in March and April. If the stock were to break back below the $50, the lower level at $45 (green) would be the next level of expected support.

The Tale of the Tape: TRMB is back above the $50 level. You could buy TRMB if it comes back down to the $50 level, with a stop placed below $50, or short the stock if it breaks the expected $50 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