Monday, March 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.
To review Ixia’s stock, please take a look at the 1-year chart of XXIA (Ixia) below with my added notations:
1-year chart of XXIA (Ixia)
XXIA has been trading mostly sideways for the last 3 months. Over that period of time, the stock has formed a clear resistance at $13.50 (purple), which had also been a prior support. In addition, the stock has created a strong level of support at $12 (green). At some point the stock will have to break one of those two levels.

The Tale of the Tape: XIA has identifiable levels of support and resistance. The possible long positions on the stock would be either on a pullback to $12, or on a solid close above $13.50. The ideal short opportunities would be on either a break below $12 or on a rally up to $13.50.
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