Riverbed Technology, Inc. (NASDAQ: RVBD)

Riverbed Technology, Inc. provides solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs) in the United States and internationally. It offers Steelhead products, which enable customers to enhance the performance of applications and access data across WANs. The company’s Steelhead products include the Steelhead Mobile that provides mobile workers with LAN-like access to corporate files and applications; Virtual Steelhead appliance to extend the WAN optimization; Cloud Steelhead, a solution for public cloud computing environments; Central Management Console that provides centralized configuration, monitoring, and control for deploying and managing Steelhead products across a WAN; and Interceptor appliance, which allows organizations to scale their WAN optimization solutions. It also offers Granite appliances that allow IT to consolidate servers and storage from branch offices to the data center without compromising branch application performance; and Cascade appliances, which help organizations to manage, secure, and optimize the availability and performance of global applications.

Please take a look at the 1-year chart of RVBD (Riverbed Technology, Inc.) below with my added notations:

1-year chart of RVBD (Riverbed Technology, Inc.)

RBVD has been working its way lower since its October peak. Over the last (6) months, the stock has formed a key level at $16 (navy), which has most recently been acting as resistance. Late last week the stock finally broke back above $16. In addition, the stock broke through on an increase in volume (red). The volume increase adds validity to the breakout.

The Tale of the Tape: RVBD had a key level of resistance at $16 that should now act as support on any pullbacks. A long trade could be entered on a pullback to $16 with a stop placed below that level. However, if the stock were to break back below $16, a short trade could be made instead.

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