Qihoo 360 Technology Co. Ltd. (NYSE: QIHU)

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People’s Republic of China. Its principal products include 360 Safe Guard, an Internet security product for Internet security and system optimization; 360 Anti-Virus, an anti-virus application to protect users computers against trojan horses, viruses, worms, adware, and other forms of malware; and 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Nokia Symbian smartphone operating systems. The company’s platform products comprise 360 Safe Browser, a Web browser; 360 Personal Start-up Page, a default homepage of 360 Safe Browser and a key access point to popular and preferred information and applications; and 360 Safebox, a solution that protects users against thefts of personal account information. It also provides online advertising services, including online marketing services and search referral services; and Internet value-added services comprising the operation of Web games developed by third-parties, remote technical support, and cloud-based services. Qihoo 360 Technology Co. Ltd. has strategic partnership with China Network Television.

Before discussing potential trading opportunities, please take a look at the 1-year chart of QIHU (Qihoo 360 Technology Co. Ltd) below with my added notations:

1-year chart of QIHU

QIHU rallied from the end of October until its early March high of $35. Over the last (3) months the stock has found support at the $30 level (navy). Last week the stock broke that $30 support. The breakdown occurred on an increase in volume, which should add validity to the breakdown.

The Tale of the Tape: QIHU has broken its support at $30 and the stock should be moving lower. A short position could be entered on any rallies back up near $30 with a stop placed above that level. A break back above $30 would negate the forecast for a move lower.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

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