Last week, the company beat on earnings and revenue estimates and provided solid full-year guidance, but the stock was dinged after investors seemingly had trouble digesting guidance for the upcoming quarter.
"We let the market take care of the stock price," Selipsky said, saying he's focused on continuing to build momentum in the business. Tableau is now up to $800 million in annual recurring revenue and continues to launch new features and products.
Aside from mobile integration, one of the company's more exciting bits includes Ask Data. Now, a user can say something like, "How were my sales last week?" and Tableau can provide a compete simple-to-digest visualized breakdown of everything.
In this daily bar chart of DATA, below, we can see some potential weakness in the indicators. Yes prices are pointed up the past 12 months and yes DATA is above the rising 50-day and the rising 200-day moving average lines, but that is not all we look at.
Volume has been increasing since July and that is normally bullish but look at the neutral/flat daily On-Balance-Volume (OBV) line. Prices have been going up but the OBV line does not show a rising pattern suggesting more aggressive buying. It is not that prices cannot go up with a flat OBV line, it is just a flat line does not give me confidence in the sustainability of the uptrend.
In the lower panel is the 12-day price momentum study (today's price minus the price 12 days ago). Momentum has slowed or weakened from December to February with lower highs. This compares with prices making higher highs from December to February and that gives us a bearish divergence - prices going up but momentum not confirming. A bearish divergence can foreshadow weaker prices ahead.
In this weekly bar chart of DATA, below, we have a mixed set of indicators. DATA has performed great the past two years - climbing from around $40 to above $130 - an impressive return. Prices are above the rising 40-week moving average line so we know the trend is bullish.
The weekly OBV line has been showing us aggressive buying from early 2017 but the line has been more neutral the past three months.
In the lower panel is the 12-week price momentum study. Momentum shows equal highs in July and January which is a bearish divergence when compared to prices making higher highs.
In this Point and Figure chart of DATA, below, we can see a potential top formation. The computer software has generated a downside price target of $104.80. A rally to $133.94 is needed to turn the chart bullish and a decline to $117.69 will likely be bearish.
Bottom line strategy: The problem with leading indicators is that they lead. Momentum is a leading indicator and we can see a bearish divergence on the daily and the weekly chart. Momentum is diverging but that does not tell us when to sell. The OBV line is diverging and volume tends to lead price but again it does not tell us when to squeeze the trigger. My best advice now is for longs to protect their positions and profits.