Deluxe Corporation (NYSE: DLX)

“Today’s Big Stock” is now live on Facebook! The TBS page will be used to highlight all things technical analysis and to provide alerts when potential TBS trading opportunities appear or important market moves occur.

Click here to be one of the first to like the page to receive live updates and articles!

Deluxe Corporation, together with its subsidiaries, provides printed products, forms, and marketing solutions to small businesses and financial institutions primarily in the United States, Canada, Europe, and South America. The company offers checks; printed forms, including billing forms, work orders, job proposals, purchase orders, invoices, and personnel forms, as well as computer forms, deposit tickets, and check registers; and accessories and other products, such as envelopes, office supplies, stamps, and labels, as well as retail packaging supplies and checkbook covers. It also provides marketing solutions, which include Web design, hosting and other Web services, logo design, search engine marketing, and digital printing services for the sales and marketing needs of small businesses, business cards, greeting cards, brochures, and apparel. In addition, the company offers fraud protection services; payroll services; and financial institution profitability, regulatory, and compliance programs. It markets its products through printed and electronic sales forces, referrals from financial institutions and telecommunications clients, purchased search results from online search engines, and independent distributors and dealers.

To review Deluxe’s stock, please take a look at the 1-year chart of DLX (Deluxe Corporation) below with my added notations:

1-year chart of DLX (Deluxe Corporation)

DLX has made its way higher since bottoming in April. For the last 3-4 months though, DLX formed a 52-week high resistance level at $32 (navy). Last week the stock broke through that resistance and hit a new 52-week high. A pull back could provide a nice long entry on the stock.

The Tale of the Tape: DLX broke out to a new 52-week high last week. A long trade could be made at $32 with a stop placed below that level. A break below $32 would negate the forecast for a move higher.

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