Fusion-IO, Inc. (NYSE: FIO)

Fusion-io, Inc. engages in the development, marketing, and sale of storage memory platforms for enterprise data decentralization primarily in the United States. Its integrated hardware and software platform enables the decentralization of data from legacy architectures and specialized hardware. The company’s storage memory platform includes ioDrive, ioFX, and ioCache products; directCache data-tiering software; ioTurbine virtualization software; ioSphere platform management software; and ION data accelerator software. Its products are used in various markets, such as financial services, Internet, technology, education, retail, manufacturing, energy, life sciences, and government. Fusion-io, Inc. sells its solutions through its direct sales force, original equipment manufacturers, and other channel partners. The company was formerly known as Fusion Multisystems, Inc. and changed its name to Fusion-io, Inc. in June 2010.

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

1-year chart of FIO (Fusion-io, Inc.)

From October until April FIO had a rough slide. However, thanks to a well-received earnings report last month, the stock is now back above it’s key price level at $18. Looking back, you can see that $18 was not only resistance (red), but it had also been a key support area last summer (blue).

The Tale of the Tape: FIO has a key level at $18. A long position could be entered at the $18 support with a stop placed under that level. A short play could be made on a break back below $18.

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