Citrix Systems, Inc. (NASDAQ: CTXS)

Citrix Systems, Inc. provides workspace, networking, and analytics solutions worldwide. The company offers workspace services, including Citrix Virtual Apps and Desktops, a cloud-enabled app and desktop virtualization solution that gives customers the flexibility to deliver desktops and applications as a service from cloud and on-premises datacenters; and Citrix Virtual Apps that allows Windows and Linux applications to be remotely delivered to Macs, PCs, thin clients, and Android/iOS mobile devices from any cloud, on-premises datacenter, or both.

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

1-year chart of Citrix (NASDAQ: CTXS)

CTXS has a key area of support around $98 (green). The stock looks like it may be making its way back down to that area again, and traders should be able to expect some sort of a bounce from there. However, if the $98 support were to break, lower prices will likely follow.

The Tale of the Tape: CTXS has key support at $98. A trader could enter a long position at or around $98 with a stop placed under the level. If the stock were to break below the support, a short position could be entered 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