I’ve already brought the setup to your attention HERE. Today the stock is breaking on a report citing a $35 target. The trade is actually hitting 1x for me on the initial trade but rather than sell, I’m adding and raising my stop on all shares to $27.65.
Click to EnlargeRead More
In case you missed the memo, semis have begun a new longer term uptrend. The SMH break reminds me of the IBB break many years ago. I keep looking for and discovering new ideas in the sector that are worth keeping on the radar. While my basis in FORM is currently $10.43 over a few buys, I don’t think the .40 is all that big of a deal when you consider the move this chart looks as if it is projecting.
If you glance at the monthly you can get an idea just how steep this guy has fallen from its 2007 high. The low level cup and handle is just now breaking and projects a move to the 15 – 16 range.
As you can see from the weekly below, the stock recently came under pressure. The shake certainly weeded out some shorter term holders but didn’t impact the longer term chart at all. In fact, the dip made for a better entry and now has give a pivot for a recent stop and risk reward.
Click to enlarge all photosRead More