InterXion Holding N.V. provides carrier and cloud neutral colocation data center services in Europe. The company enables its customers to connect to a range of telecommunications carriers, Internet service providers, and other customers. Its data centers act as content, cloud, and connectivity hubs that facilitate the processing, storage, sharing, and distribution of data, content, applications, and media between carriers and customers. The company offers its services to digital media and distribution, enterprises, financial services sectors, managed services providers, and network providers.
Take a look at the 1-year chart of InterXion (NYSE: INXN) with the added notations:
INXN got a nice pop back in February, but has since trended slowly lower. Eventually, the stock found support at $27.00 (green). INXN has hit that support level a couple of times so far this year, and now it looks like the stock will be testing that support once again. Traders could expect some sort of bounce, but if the $27.00 support were to break, lower prices should follow.
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The Tale of the Tape: INXN has an important level of support at $27.00. A trader could enter a long position at $27.00 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!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach