Ellie Mae Inc (NYSE: ELLI)

Ellie Mae, Inc. provides on-demand software solutions and services for the residential mortgage industry in the United States. Its mortgage management solutions streamline and automate the process of originating and funding new mortgage loans, facilitating regulatory compliance, and reducing documentation errors. The company provides Encompass, a proprietary software product that combines loan origination, business management, and customer relationship management (CRM) software for mortgage originators into one end-to-end system.
Take a look at the 1-year chart of Ellie (NYSE: ELLI) below with my added notations:

ELLI has been trending consistently higher for the last 6 months, and during that time the stock has also formed a clear trendline of support (blue). In addition, the stock had also created at 52-week high resistance level at $36 (red) in August and September. At some point ELLI was going to have to break one of those two levels, and late last week the stock broke through resistance to a new high.

The Tale of the Tape: ELLI broke though its $36 resistance, which was also a new 52-week high. A long trade could be made on a pullback down to the $36 level with a stop placed below that level. A break back below $36 should lead to a fall down to the trendline support, which is currently near $33.
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