Cirrus Logic, Inc. (CRUS) was reviewed in late January and I wrote, "At best, CRUS might rally to around $60. A neutral outcome is further sideways trading. If the bears are still in control we could see further declines into the $48-$46 area. My choice would be to look for better trading and investing opportunities somewhere else."
Prices have actually been weaker than I anticipated with $35 being reached. Is there a bottom?
In this daily bar chart of CRUS, below, we can see that prices are below the declining 50-day moving average line as well as the declining 200-day line.
The daily On-Balance-Volume (OBV) line has been weak since June. On the bright side we can see a bullish divergence from February as price momentum (lower panel) has made higher lows from February to late April while prices have made lower lows. Momentum is a leading indicator and could be foreshadowing a rally ahead.
In this weekly bar chart of CRUS, below, we can see that prices are back to old resistance in early 2016 which could operate as support. Prices are below the declining 40-week moving average line. The weekly OBV line is pointed down and the weekly Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this Point and Figure chart of CRUS, below, we can see an upside price target of $46.
Bottom line: Downside price momentum has slowed and we could see CRUS trade higher in the weeks ahead. Aggressive traders could go long at current levels risking below $35 and looking for gains to the $46-$50 area.