Callidus (NASDAQ: CALD)

Callidus Software Inc. provides enterprise software and related services to telecommunications, insurance, banking, and technology markets worldwide. It offers Marketing Automation to generate sales leads by capturing intelligence about buyers’ behaviors and engaging them across multiple channels; Territory and Quota to evaluate territory, quota distribution plans, and strategies for meeting corporate sales goals; Enablement that provides sales content at each step of the sales cycle; Litmos Learning Management System for training; Litmos Content to create courses that can be published to desktop browsers and mobile devices; Litmos Healthcare, a cloud based solution; and Sales Performance Manager to set targeted coaching plans to the individual sales professional.

Take a look at the 1-year chart of Callidus (NASDAQ: CALD) below with my added notations:

Over the past two months, CALD has formed a key level of resistance to watch at the $17 (red) mark. The stock tested that level many times in November, December, and now again on the 1st trading day of January. A strong close above that $17 level should lead to higher prices.


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The Tale of the Tape: CALD has a key level of resistance at $17. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $17 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