NEW YORK (TheStreet) -- Good morning traders!
1. First let's look at Tableau Software, which provides various business analytics software products in the U.S., Canada, and internationally.
Tableau traded positive on Monday, closing up 5.59% to $57.66 per share.
- Monday's range: $54.03 - $58.18
- 52-week range: $54.03 - $58.19
- Monday's volume: 2,706,351
- 3-month average volume: 2,094,710
Tableau looks good to me from a technical standpoint, as shares closed over the 20-day simple moving average yesterday. Tableau is a falling knife situation, as the share price has dropped 45% in the last 82 days, so be very careful.
The stock is going on my watch list for a potential buy today. I'd like to see continued positive sentiment today first, though.
Also, there are rumors around this stock of a takeover, and rumors can really change investor sentiment.
Technically, Tableau has stabilized at the current level, and looks like it has reached its bottom. Over the last 16 days, the chart has formed a doji -- a term for a chart shape that paints a picture of uncertainty, a battle between the bulls and bears. A doji chart has a stock price that opens and closes in almost the same spot, but it may be wide-ranging in price over the course of the day. In Japanese, doji means clumsiness, and that's how I look at the doji.
Yesterday, the Tableau chart formed a large bullish candle, and closed over the 20-day simple moving average. We need to see continued strength and increasing volumes on the breakout to enter this trade.
There is overhead resistance at around $59.00, $60.87, $63.35, $66.03 and then again at the 200-day simple moving average at $71.30. Watch for consolidation, a pullback, or continuation patterns at these levels. My first target is the 200-day simple moving average, which is almost 14% to the upside, but don't be afraid to take smaller profits on its way up.
I'd set a stop at just below the t-line at $55.93. Stay long until you see a confirmed sell signal, or a close below the t-line.