Trimble Navigation Limited (NASDAQ: TRMB)

Trimble Navigation Limited designs and distributes positioning products and applications enabled by global positioning system (GPS), optical, laser, and wireless communications technology. The company’s Engineering and Construction segment offers software for optimized route selection and design; systems to automatically guide and control construction equipment, such as bulldozers, graders and paving equipment; systems to monitor, track, and manage assets, equipment, and workers. Its Field Solutions segment provides guidance and positioning systems, automated application systems, and information management solutions to improve crop performance, profitability, and environmental quality. The company’s Mobile Solutions segment offers vehicle solutions, such as GPS receivers, business logic, sensor interfaces, and wireless modems; mobile worker solutions to automate service technician work in the field. Its Advanced Devices segment supplies global navigation satellite system modules (GNSS), licensing and complementary technologies, and GNSS-integrated sub-system solutions; GPS receivers and embedded modules for aircraft navigation and timing applications and information for outdoor recreational activities.

Before discussing potential trading opportunities, please take a look at the 1-year chart of TRMB (Trimble Navigation Limited) below with my added notations:

1-year chart of TRMB (Trimble Navigation Limited)

TRMB had been moving higher since July, but then peaked back in January. Over the last (8) months the stock had formed a level of support at $26 (teal). You can also see how the stock seemed to be hinting of a potential breakdown being that it had been trending lower (blue) in the face of a rising stock market. Well, last week the stock did break that $26 support and should be moving lower overall from there.

The Tale of the Tape: TRMB has broken its support at $26 and the stock has started moving lower. A short position could be entered on any rallies back up near $26 with a stop placed above that level. A break back above $26 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