Qlik Technologies Inc (NASDAQ: QLIK)

Qlik Technologies Inc. provides user-driven business intelligence solutions that enable customers to make business decisions. The company develops, commercializes, and implements software products and related services. It offers QlikView, which enables business users to explore data; ask and answer their own stream of questions; and follow their own path to insight on their own, or collaborate across teams and organizations. The company also provides license, maintenance, and professional services. It serves customers in various industry verticals, such as consumer packaged goods, financial services, pharmaceuticals, retail, manufacturing, technology, and healthcare.

Take a look at the 1-year chart of Qlik (NASDAQ: QLIK) below with the added notations:

1-year chart of Qlik (NASDAQ: QLIK)

QLIK had been trending lower since last August, but over the most recent 6 months the $30 price level (blue) has become very important to the stock. Not only was $30 a key support level back in October, November and December, but that level was also resistance at the end of March and beginning of April. Now that QLIK has broken back above $30 that should open the door to higher prices for the stock.

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The Tale of the Tape: QLIK has broken through resistance at $30. A trader could enter a long position on a pullback down to $30 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made if the stock breaks back below $30.

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