These fellows are proponents of the open architecture approach to computer software. They trade at a p/e just under 70X. The charts are not perfectly clear, unfortunately, nevertheless I would be inclined to lighten up on this one.
The stock comes from $140 or so in 2000, a 62% retracement could conceivable take it back to about $90. On the other side of the equation there is the rather high p/e, the fact that the stock has done a ten bagger, and that it is trading at the upper end of the channel. Most importantly the last little squiggle is clearly corrective and therefore a drop at least to below $48.50 should be next. Looking at a semi-log chart it is also possible to argue that the correction after the tech crash is coming to an end, this view would rhyme much better with the Nasdaq and other tech stocks.
