Cypress Semiconductor (CY) had a strong rally in the first half of 2016, but prices have been locked in a sideways trading range the past five months. An upside breakout could happen at any time, but the current price picture and indicator development suggests further sideways price action, at least for now.
Let's check out the charts.
This one-year daily chart of CY, above, shows the uptrend in CY from February through July followed by a neutral trend. Since early July, there have been several unsuccessful rallies above $12.00. All of these rallies have been rejected. Prices have crossed above and below the 50-day moving average line and are currently back above it.
The rising 200-day moving average line has been a good place to go long CY as it tested that line in late June and early November. The On-Balance-Volume (OBV) line has mirrored the price action by trending higher earlier in 2016 and then trending sideways since September. Prices have crept higher from an early November low, but the price momentum study has weakened, suggesting that CY does not currently have the "energy" to break out over $12.
This weekly chart of CY, above, is positive but also does not suggest a rally right now. Prices are above the rising 40-week moving average line, so we know the trend is up. The weekly OBV line is flat and is not signaling aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line, but the two averages that comprise the indicator are flat or right on top of each other. All this suggests a sideways market.
This Point and Figure chart of CY, above, shows a longer-term picture of the price action. On this chart CY needs to make a weekly trade up to $12.50 to generate a "breakout."