Tangoe Inc (NASDAQ: TNGO)

Tangoe, Inc. provides communications lifecycle management software and services primarily to commercial enterprises and governmental agencies. The company offers an on-demand Communications Management Platform (CMP), a suite of software designed to manage and optimize the complex processes and expenses associated with the lifecycle of an enterprise’s fixed and mobile communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, mobile device management, telecommunications expense management, invoice processing, expense allocation and accounting, and asset decommissioning and disposal. It also provides help desk, asset procurement and provisioning, and carrier dispute resolution services to manage customers’ communications assets and services. In addition, the company offers strategic consulting and other services, including sourcing, strategic advise, bill auditing, inventory optimization, mobile optimization, policy administration, and mobile lifecycle; and implementation services comprising data conversion, system configuration, process review, and corporate system integration services that assist customers in the setup and deployment of CMP.

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

1-year chart of TNGO (Tangoe, Inc.)

After selling off from August down into December, TNGO rallied back up to hit a high of $16 in February and sold off again into March and April. Since then, the stock has rallied back up to the $16 resistance (red) and appears to have formed a cup (blue) and handle (purple) pattern. TNGO would confirm the pattern by breaking through the $16 resistance, and if it does, the stock should be moving higher from there. To add validity to any breakout, the break should occur on heavier volume than usual.

Keep in mind that simple is usually better. Had I never pointed out this cup and handle pattern, one would still think this stock is moving higher simply if it broke through the $16 resistance level.

The Tale of the Tape: TNGO seems to have formed a cup and handle pattern. A long trade should be entered on a breakout above the $16 level with a stop placed under that level.

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