TIBCO Software Inc. provides middleware and infrastructure software worldwide. It offers products in the areas of service-oriented architecture (SOA) and core infrastructure; business optimization; and process automation and collaboration. Its SOA and core infrastructure product line helps organizations integrate their disparate systems and move towards flexible infrastructure comprising services or discrete data components that can be assembled, orchestrated, and reused. The company’s business optimization software tracks large volumes of real-time events as they occur and applies rules in order to identify patterns that signify problems, threats, and opportunities, as well as automatically initiate appropriate notifications or adaptations of processes. Its process automation and collaboration software helps organizations coordinate manual and automated process flows that span their business and enables employees to collaborate in real-time using social media. The company also provides professional services, which include consulting services that comprise systems planning and design, installation, and systems integration; maintenance and support; training; and hosted services.
Please take a look at the 1-year chart of TIBX (TIBCO Software, Inc.) below with my added notations:
TIBCO’s stock had been trading in a large, sideways range since December. Over those last (9) months, the stock has also formed a key level at $24 (navy), which had most recently been acting as resistance. Late last week the stock finally broke back above that $24 level. So, assuming TIBX holds $24, the stock should be moving overall higher from here.
The Tale of the Tape: TIBX had a key level of resistance at $24 that should now act as support on any pullbacks. A long trade could be entered on a pullback to $24 with a stop placed below that level. However, if the stock were to break back below $24, 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!
Christian Tharp, CMT