Shutterfly, Inc. (NASDAQ: SFLY)

Shutterfly, Inc. provides digital personalized photo products and services in the United States. It offers a range of personalized photo-based products and services for consumers to upload, edit, enhance, organize, find, share, create, print, and preserve their memories. The company also produces and sells photo books, greeting and stationery cards, personalized calendars, and other photo-based merchandise, including calendars, mugs, canvas prints, mouse pads, magnets, and puzzles; and photo prints of carious sizes. In addition, it provides Shutterfly iPhone Photo App, which combines storage, viewing, and photo gift creation. The company offers its products and services under the Shutterfly, Tiny Prints, Wedding Paper Divas, and Treat brand names.
To review Shutterfly’s stock, please take a look at the 1-year chart of SFLY (Shutterfly, Inc.) below with my added notations:

SFLY had been trading sideways for the last 2+ months. Over that period of time, the stock had formed a clear resistance level at $52 (red). In addition, the stock also created a strong level of support at $45 (green). The rectangle formation on SFLY is very helpful in trading it because at some point the stock would have to break one of the two levels the pattern had created. As you can see, yesterday the stock finally broke the $45 support and should be moving lower from here.

The Tale of the Tape: SFLY recently broke down out of its rectangle pattern. A rally up to $45 would provide an opportunity to get short on the stock. However, a break back above $45 would negate the forecast for a move lower.
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