Cornerstone OnDemand, Inc. provides cloud-based talent management solutions delivered as software-as-a-service. It provides recruiting, onboarding, learning, performance, succession, compensation, extended enterprise, and salesforce products offerings. The company offers Enterprise and Mid-Market solution that is a cloud-based suite that addresses hiring, developing, engaging employees throughout their careers, and cultivating future leaders. The Enterprise and Mid-Market solution also helps enhancing business execution through integrating with an organization’s extended enterprise of clients, vendors, and distributors by delivering training, certification programs, and other content. It also provides Cornerstone Growth Edition, a cloud-based talent management solution with learning and performance product offerings targeted to organizations with approximately 400 employees, as well as cross-product tools for analytics and reporting, employee profile management, and e-learning content aggregation.
Take a look at the 1-year chart of Cornerstone (NASDAQ: CSOD) below with my added notations:
CSOD has been trending lower for most of the past year. Over that time, the stock has formed an important trend line of resistance (red). Always remember, any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. CSOD obviously has an important trendline of resistance, which currently sits right around $32.
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The Tale of the Tape: CSOD is currently stuck under a down trending resistance. A break above that resistance should mean higher prices, thus a long trade could be made. Short traders might look to enter a trade at the resistance.
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