Nimble Storage Inc (NYSE: NMBL)

Nimble Storage, Inc. provides flash-optimized hybrid storage platform. The company’s software and storage systems handle various mainstream applications, including virtual desktops, databases, email, collaboration, and analytics. It offers systems that provide adaptive performance for high-input/output and high-capacity mainstream business applications and environments, such as Exchange, Oracle, SharePoint, SQL Server, virtual desktop infrastructure, and server virtualization. The company sells its products through a network of value added resellers and distributors to a range of industries comprising cloud-based service providers, education, financial services, healthcare, manufacturing, state and local government, and technology worldwide.

To analyze Nimble’s stock for potential trading opportunities, please take a look at the 1-year chart of NMBL (Nimble Storage, Inc.) below with my added notations:

1-year chart of NMBL (Nimble Storage, Inc.)

NMBL rallied well after its IPO only to fall pretty hard into May. The stock has been moving higher as of late and has recently hit a new recovery high. One level in particular that stands out on the stock is the $30 (blue) mark, which the stock broke back above yesterday.

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The Tale of the Tape: NMBL is back above its key level of $30 and should be moving higher. A long trade could be made on a pullback down to that $30 level with a stop placed above that level. A break back below $30 would negate the forecast for a higher move.

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