Responsys Inc (NASDAQ: MKTG)

Responsys, Inc. provides email and cross-channel marketing solutions that enable companies to engage in relationship-based marketing across various interactive channels. The company offers Responsys Interact suite, a software-as-a-service platform that provides marketers with a set of integrated applications to create, execute, optimize, and automate marketing campaigns across various channels, including email, mobile, social, the Web, and display. Its platform also leverages third-party applications and data from real-time sources allowing customers to deliver targeted content to its customers and known prospects as part of their interactive marketing campaigns. In addition, the company provides professional services, such as strategic, creative, deliverability, campaign, education, and technical services.

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

1-year chart of MKTG (Responsys, Inc.)

After rallying from beneath $6 to $18 in September, MKTG formed a solid resistance at that $18 (blue). Earlier this month, the stock pushed through that resistance on a large increase in volume. Now, MKTG is clearly resisting $20 (red).

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The Tale of the Tape: MKTG has a level of resistance at $20 and support at $18. A long trade could be made on a break through $20, or on a pullback to $18, with a stop placed under the level of entry. Traders could also enter a short trade on a break below $18.

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

Follow me on Twitter: @cmtstockcoach