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. It serves agriculture, architecture, civil engineering, construction, environmental management, government, natural resources, transportation, and utilities industries through dealers, distributors, and authorized representatives worldwide. The company was founded in 1978 and is headquartered in Sunnyvale, California.

To review Trimble’s stock, 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)

Since August of last year TRMB has grinded its way higher. Over the last 3 months though, the stock has formed a key level of resistance at $40 (red). That resistance is also a 52-week high resistance. After a sharp drop back in May, the stock appears to be headed back up towards its $40 resistance.

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The Tale of the Tape: TRMB has a $40, 52-week high resistance level to watch. A long trade could be made on a break above that $40 with a stop placed below it.

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