Citrix Systems (NASDAQ: CTXS) — This cloud computing technology solutions company saw a big jump in Q1 earnings and predicted better-than-expected revenue for the June period. CTXS was upgraded by several research firms this week, which caused it to “gap” into the mid-$80s from the high $70s.
Technically, the stock broke from an ascending triangle in February, and then pulled back to its 50-day moving average (blue line) before advancing to new highs. On Thursday, CTXS broke wildly above its upper channel resistance line, which opened a huge continuation gap from $77.83 to $81.84. This type of action usually results in much higher prices, but the gap could be at least partially closed by profit-taking.
Buy CTXS on a pullback to $80 or below with a trading target of $90. Long-term investors should buy CTXS as a cornerstone of a portfolio of aggressive technology stocks.
If you have questions or comments for Sam Collins, please e-mail him at firstname.lastname@example.org.