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.
Take a look at the 1-year chart of Tableau (NYSE: DATA) below with the added notations:
Through all of its ups and downs, DATA is sitting right where it was this time last year. During that time, the $90 price level (purple) has become very important to the stock. Not only was the $90 level a resistance area back in October and December of 2014, but that level has also been support in March, August and November. Now that DATA is back below it, $90 is acting as resistance again.
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The Tale of the Tape: DATA has a key level at $90. A trader could enter a long position on a break above $90 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made instead at the $90 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