Citrix Systems, Inc. (NASDAQ: CTXS)

Citrix Systems, Inc. delivers solutions to secure and access applications worldwide. The company offers workspace services, including XenDesktop, a cloud-enabled desktop virtualization solution that gives customers the flexibility to deliver desktops and applications as a service from cloud and on-premises datacenters; and XenApp that allows Windows applications to be delivered as cloud services to Android and iOS mobile devices, Macs, PCs, and thin clients.

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

1-year chart of Citrix (NASDAQ: CTXS)

CTXS has been rallying higher for the past several weeks, eventually making its way back above the key level $105 (blue). The stock hit resistance in that area a couple of times back in October, and has also found support a few times this month. The $105 mark should be pivotal in dictating CTXS’s next move.

The Tale of the Tape: CTXS has a key level at $105. A trader could enter a long position on a pullback down to that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a break back below $105.

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