Jive Software Inc (NASDAQ: JIVE)

Jive Software, Inc. provides a social business software platform to businesses, government agencies, and other enterprises. Its Jive Engage Platform enables collaboration across two principal communities and employees within the enterprise, and customers and partners outside the enterprise. The company’s Jive Engage Platform is used as a communications tool and collaborative workspace that supports and enhances knowledge sharing, facilitates communication within and across organizational boundaries, and enables individuals to work together to achieve common business goals. Its platform allows customers and partners of the enterprise to connect socially with one another, as well as with the enterprise, in a structured online community that enables users to ask questions, post answers, and communicate about a product or particular issue. In addition, it provides Jive What Matters, a user interface to track, consume, manage, and filter critical business information, communications, and actions; Jive Apps Market, a secure market of business applications that are integrated to and accessed from within the Jive Engage Platform; and professional, support, and training services.

To analyze Jive’s stock for potential trading opportunities, please take a look at the 1-year chart of JIVE (Jive Software, Inc.) below with my added notations:

1-year chart of JIVE (Jive Software, Inc.)

The main price level to watch on JIVE is $16 (blue). Not only was the $16 resistance readily apparent over the (7) months and back in March, but that price also acted as support just last week. So, the $16 level is key to this stock. Assuming the stock moves higher, the increments of $2 (red) have also acted as common price levels for the stock.

The Tale of the Tape: JIVE’s key level to watch is $16. A long position could be entered at the $16 support with a stop placed below that level, or a short play could be made on a break below $16 if that should happen.

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