Ixia provides converged Internet protocol (IP) network validation and network visibility solutions in the United States and internationally. The company’s solutions are used to design, verify, and monitor a range of Ethernet, Wi-Fi, and 3G/long-term evolution equipment and networks. It offers hardware platforms, such as chassis; interface cards, which generate, receive, and analyze various traffic types at multiple network layers; and Net Tool Optimizer, a hardware appliance that provides network visibility into physical and virtual networks, and optimizes monitoring tool performance. The company also provides a suite of software applications tools for video testing, voice testing, intelligent network testing, conformance testing, security testing, application testing, router testing, switch testing, wireless testing, Wi-Fi testing, broadband testing, and automated testing requirements.
To review Ixia’s stock, please take a look at the 1-year chart of XXIA (Ixia) below with my added notations:
XXIA has been trading mostly sideways for the last 3 months. Over that period of time, the stock has formed a clear resistance at $13.50 (purple), which had also been a prior support. In addition, the stock has created a strong level of support at $12 (green). At some point the stock will have to break one of those two levels.
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The Tale of the Tape: XIA has identifiable levels of support and resistance. The possible long positions on the stock would be either on a pullback to $12, or on a solid close above $13.50. The ideal short opportunities would be on either a break below $12 or on a rally up to $13.50.
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
Follow me on Twitter: @cmtstockcoach