Citrix Systems specializes in providing desktop, application, and server virtualization services. It also has a cloud computing segment. Customers of Citrix use the company’s software as part of their core infrastructure. Therefore there are high switching costs that benefit Citrix. Additionally, Citrix is already a leader in the virtualization space and is likely to keep hold of its customers and see growth through its cloud initiatives. As a result, the long-term prospects of the company look bright.
The Long term monthly chart for Citrix shows an uptrend since 2014 making higher highs and higher lows. In late 2020, the price found support at the $113 level, which was previously a resistance level back in 2018. We had picked Citrix back in November, when the price had bounced up from the $113 support level. The stock went up to a peak level of $144 in March 2021 and April 2021 before falling back down 20%. The price is now close to the $113 level, and there is a high likelihood of it bouncing up again. So, a long position can be initiated with a target of $144 and then $150. A stop-loss can be placed below the bottom of the long-term trend at around $104.
Position entered into our long-term tracking portfolio today. The entry point is at $118.89, and a stop-loss placed at $88.38, which is 25 % below the entry point. The short-term to medium-term profit at the top of the trend is set at $140.17, giving a profit of 18%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.