Atlassian Corporation Plc, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. It provides project tracking, content creation and sharing, and service management products.
Take a look at the 1-year chart of Atlassian (NASDAQ: TEAM) with the added notations:
TEAM has a formed an important level of support at $100 (green). The stock looks like it may be making its way back down to there again, and traders should be able to expect some sort of a bounce from there, if it does. However, if the $100 support were to break, lower prices will likely follow.
The Tale of the Tape: TEAM has key support at $100. A trader could enter a long position at or around $100 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