Friday, January 10, 2014

Ixia (NASDAQ: XXIA)

Ixia provides converged Internet protocol (IP) network validation and network visibility solutions in the United States and internationally. The company’s solutions are used to design, verify, and monitor a range of Ethernet, Wi-Fi, and 3G/long-term evolution equipment and networks. It offers hardware platforms, such as chassis; interface cards, which generate, receive, and analyze various traffic types at multiple network layers; and Net Tool Optimizer, a hardware appliance that provides network visibility into physical and virtual networks, and optimizes monitoring tool performance. The company also provides a suite of software applications tools for video testing, voice testing, intelligent network testing, conformance testing, security testing, application testing, router testing, switch testing, wireless testing, Wi-Fi testing, broadband testing, and automated testing requirements.
Please take a look at the 1-year chart of XXIA (Ixia) below with my added notations:
1-year chart of XXIA (Ixia)
XXIA obviously hasn’t done well this year. The stock has fallen from a peak of $22 in March down to a low of $12 in December. The two most common price levels on this stock along the way have been $16 (blue) and $14 (red). Each of those prices has been both support and resistances multiple times. Now, the stock has found its most recent low at $12 (green). So, the stock commonly finds the increments of $2 important.

The Tale of the Tape: XXIA is currently trading between $12 and $14. A long trade could be made on a pullback to $12 or on a break back above $14. Short trades look better on this stock at this point though, so a short trade on a rally to $14 or on a break below $12 would make good sense too.
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