Teradata Corporation (NYSE: TDC)

Teradata Corporation provides analytic data platforms, marketing and analytic applications, and related consulting services in the United States and internationally. Its analytic data platforms comprise software, hardware, and related business consulting and support services for data warehousing, active intelligence, big data analytics, and data discovery. The company’s products comprise Teradata Analytic Database Software that delivers near real-time intelligence; Teradata Workload-Specific Platforms; Teradata Aster Discovery Platform, which is pre-configured with Teradata Aster Database; and Teradata Logical Data Models that are blueprints for designing an integrated data warehouse.

Take a look at the 1-year chart of Teradata (NYSE: TDC) with the added notations:

1-year chart of Teradata (NYSE: TDC)

TDC has been trading sideways for all of 2014. In addition, since the beginning of February, the stock has found support at $40 (green) whenever that level has been approached. Now that the stock is there again, traders should be able to expect some sort of bounce. However, if the $40 support were to break, much lower prices should follow.

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The Tale of the Tape: TDC has a key level of support at $40. A trader could enter a long position at $40 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

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