Citrix Systems, Inc. designs, develops, and markets technology solutions to deliver IT services on-demand worldwide. It offers desktop solutions, such as XenDesktop, an integrated desktop virtualization system; XenApp, an application virtualization solution; AppDNA, an application migration software; VDI-in-a-Box, a desktop virtualization solution; and XenClient, a bare-metal hypervisor that runs on the client device hardware. The company also provides datacenter and cloud solutions, such as NetScaler, a Web application delivery controller and Branch Repeater for branch and mobile users. In addition, it offers software as a service products, such as GoToMeeting primarily for online meetings; GoToWebinar for Webinar sessions; GoToTraining to deliver content to trainees; Integrated Toll Free Audio to provide an audio and Web experience; and HiDef Corporate that offers audio options with reservationless audio conferencing. Further, the company offers GoToAssist, a remote technical-support solution; GoToManage solution for IT management; GoToMyPC, which offers remote access to PC and Mac from an Internet-connected computer; ShareFile, a data sharing and collaboration product; and consulting, technical support, and product training and certification services.
To review Citrix’s stock, please take a look at the 1-year chart of CTXS (Citrix Systems, Inc.) below with my added notations:
For the last (s) months CTXS has been consolidating within a common price pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For CTXS, the rectangle pattern has formed a $75 resistance level (red) and a $70 support level (blue).
The Tale of the Tape: CTXS has formed a rectangle pattern. The possible long positions on the stock would be either on a pullback to $70, or on a breakout above $75. The short opportunities on CTXS would be on a break below $70 or on a rally back up to $75.
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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!
Christian Tharp, CMT