Riverbed Technology, Inc. - RVBD - close: 36.05 change: +0.50

Stop Loss: 34.95
Target(s): 39.90, 43.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
RVBD is a networking stock that has seen a significant retracement off its 2010 rally to new all-time highs back in March. The stock has been consolidating sideways the last five weeks. Now RVBD is trying to breakout past resistance near its 50-dma at $36.60 and its 100-dma closer to $37.15. Nimble traders might consider buying a dip near $35.00. I am suggesting we use a trigger to launch bullish positions at $37.25. If triggered at $37.25 our targets are $39.90 and $43.00. The $40.00 level could be round-number resistance so we want to take some money off the table near this area. FYI: The Point & Figure chart for RVBD is currently bearish but a breakout past the $37.00 level would produce a new triple-top breakout buy signal.

Trigger @ $37.25

Suggested Position: buy RVBD stock @ $37.25

- or -

Buy the June $40 call (RVBD1118F40)

Annotated chart:

Entry on May x at $xx.xx
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 5.1 million
Listed on May 11th, 2011