Infoblox Inc (NYSE: BLOX)

Infoblox Inc. develops, markets, and sells automated network control solutions worldwide. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. The company offers Trinzic Enterprise, an appliance designed to ensure the continuous operation of network control; Trinzic IPAM for Microsoft, which provides a Web-based management interface for the centralized management of DNS, DHCP, and multiple IP address pools running on Microsoft servers; and Trinzic IPAM Insight that allows automated discovery of network device configuration information used in automation and compliance reporting. It also provides Trinzic NetMRI product, which automates network change and configuration management processes; Trinzic Network Automation that automates network configuration functions. The company also provides maintenance and support, consulting, and training services. It serves end customers of various industries, including financial services, government, healthcare, manufacturing, retail, technology, and telecommunications.

To review Infoblox’s stock, please take a look at the 1-year chart of BLOX (Infoblox, Inc.) below with my added notations:

1-year chart of BLOX (Infoblox, Inc.)

BLOX has been working its way slowly higher since bottoming at $14 in November. In September and May the stock hit $24 as resistance (navy), which was also a 52-week high resistance. After the stock finally pushed above that resistance at the end of last month, BLOX has tested the $24 level as support once already, just as one might expect.

The Tale of the Tape: BLOX broke out to a new 52-week high and has now pulled back. A long trade could be made at $24 with a stop placed below that level. A break below $24 would negate the forecast for a continued move higher.

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