Tableau Software Inc (NYSE: DATA)

Tableau Software, Inc., together with its subsidiaries, provides business analytics software products in the United States, Canada, and internationally. The company offers Tableau Desktop, a self-service analytics environment that empowers people to access and analyze data independently; and Tableau Server, a business intelligence platform with data management, scalability, and security to foster the sharing of data, as well as to improve the dissemination of information in an organization and promote enhanced decision-making. It also offers Tableau Online, a cloud-based hosted version of Tableau Server; and Tableau Public, a cloud-based platform that allows bloggers, journalists, researchers, and government workers to visualize public data on their Websites.

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

1-year chart of Tableau (NYSE: DATA)

DATA rallied strongly higher from its October low. Now that the stock has declined lower, the most recent month has found DATA hitting support at $90 (green). That same $90 support was also support earlier in the year, and it was also a resistance back in December. Now that the stock appears to be testing that support level again, traders should be able to expect some sort of bounce. However, if the $90 support were to break, lower prices should follow.

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The Tale of the Tape: DATA has a key level of support at $90. A trader could enter a long position at $90 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