LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions.
Take a look at the 1-year chart of Log (NASDAQ: LOGM) with the added notations:
LOGM has formed a key level of support at $75 (green) during the past ten months. The stock appears to be approaching that level again, and may get yet another bounce. However, if the $75 support level were to break, lower prices should follow for LOGM.
The Tale of the Tape: LOGM has key support at $75. A trader could enter a long position at or around $75 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!
Christian Tharp, CMT