Wednesday, June 11, 2014

Constant Contact (NASDAQ: CTCT)

Constant Contact, Inc. provides online marketing tools that are designed for small businesses, associations, and non-profits primarily in the United States. The company offers email marketing products that allow customers to create, send, and track professional-looking email campaigns; event marketing products, which allow customers to promote and manage events, communicate with invitees and registrants, capture and track registrations, and collect online payments; and social media products, including Social Campaigns, which enable customers to reach and engage users on Facebook to grow their fans and create social word-of-mouth through easy-to-create offers and promotions.
Please take a look at the 1-year chart of CTCT (Constant Contact, Inc.) below with my added notations:
CTCT
After declining from January until the beginning of April, CTCT slowly worked its way higher. During the last 3 months the stock created at clear resistance level at $30, while also forming an up-trending level of support as well. At some point the stock had to break one of those levels, and yesterday the stock broke support.
CTCT broke its up-trending support level. A short trade could be made on a rally up to that level with a stop placed above the entry. However, if the stock were to break above the $30 resistance traders might want to look to get long on the stock instead.

The Tale of the Tape: VIPS had a level of resistance at $160 and the stock broke that resistance. The ideal long opportunity would be on a pullback down to or near that previous $160 level. On the other hand, one would want to enter a short position on a break back below that level.
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