LogMeIn, Inc. provides cloud-based services for individuals and businesses to securely connect to their workplace, colleagues, and customers. The company’s offerings include GoToMeeting, a secure product for online meetings, sales demonstrations, and collaborative gatherings; GoToTraining, a secure online training product for interactive training sessions; GoToWebinar, a do-it-yourself Webinar product for organizations to enhance market reach; join.me, join.me pro, and join.me enterprise that are browser-based online meeting and screen sharing services; OpenVoice, a reservation-less audio conferencing service; Grasshopper, a provider of cloud-based telephony solutions; and BoldChat, a Web-based live chat service.
Take a look at the 1-year chart of LogMein (NASDAQ: LOGM) below with added notations:
LOGM had been trading mostly sideways for the past 5 months. During that time, the stock had created a key resistance level at $110 (green), which was also LOGM’s 52-week high barrier. The stock finally broke above that level in earlier this week, and should now be moving overall higher.
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The Tale of the Tape: LOGM broke its 52-week resistance at $110. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $110 could negate the forecast for a move higher.
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