NEW YORK ( TheStreet) -- Tonight, after the market close, Tibco Software ( TIBX) is set to report earnings. With a PE ratio approaching 57, this is not a cheap stock even with a year-over-year quarterly revenue growth rate of 23% and EPS quarterly growth rate of 21%.

I am not a fan of buying in front of earnings reports and feel the same about Tibco. I would much rather be a buyer of weakness, not trying to chase strength. If Tibco witnesses selling pressure as a result of earnings, then I might be interested in adding to my existing position though and here's why.

If you compare Tibco to its larger competitors, the price performance of the stock is astounding. Here's a chart with the five largest competitors. The only company that comes close is Oracle ( ORCL - Get Report). When you think about Oracle, a stock that is in the headlines practically every single day yet, and then you realize that Tibco has easily outperformed even them, you wonder why you don't hear more about Tibco.

So the real question is can the outperformance continue? Can Tibco continue to outpace its rivals?

When I look at the Trading Cube for the company, I see bullish trends across all time frames. From this perspective, there is a bullish divergence evident. Tibco is more bullish than the sector and even the Nasdaq.

With a product suite that is selling well and, relative to its peers, a company that continues to excel, the question you should be asking is at what price you might add some of this stock to your portfolio without taking undue risk. Here's a daily chart showing short term possible entry points.

What you would like to see happen would be for the stock to retrace into the support zones while volume dries up. Both support zones are anchored by the high volume, wide price spread bar from Feb. 1. One is at the high of the bar while the other at the low. The bar had 8.5 million shares trade.

If price retraces into the higher support zone and volume is less than 8 million shares, then that would represent a good place to add to your position or start a new one. Leave some room to add more though because a retrace to the lower of the two support zones could easily occur as well. Again, if volume lightens up on a retrace into the $22 area, that would be where I would add the remaining desired shares.

Until next time, just keep trading the charts!

At the time of publication, Little owned TIBX and ORCL, though positions can change at any time.

L.A. Little, author, professional trader and money manager, writes daily on www.tatoday.com, a free educational site for traders and investors. He has been featured in numerous publications and is the author of Trade Like The Little Guy.

His background includes degrees in philosophy, computer science, computer information systems and telecommunications. With a trading philosophy centered on capital protection first and the accumulation of consistent gains over time, L.A. espouses a simplistic technical approach to trading the markets that is a throwback to the days of past. With a focus on swing points and the qualification of trends, L.A. provides a breath of fresh air to an otherwise crowded room of derivative indicators with the emphasis on technical minutiae.