Looking across the pond, the charts of ARM Holdings (ARMH) are starting to look promising.
In this daily chart of ARMH, above, we can see that prices gapped lower yesterday after a gap up earlier this month. Prices are below the 50-day and 200-day moving average lines, but both lines are flat. The On-Balance-Volume (OBV) line started to improve in May, suggesting that buyers were becoming more aggressive, but the movement of the OBV line has been uneven this month as traders have been pushed and pulled in both directions. In June, there is a small bearish divergence as prices briefly made higher highs and the momentum study made lower highs. Because this bearish divergence only spans a short period of time, it should not have any long-term implications.
In this three-year weekly chart of ARMH, above, we can see that prices are below the 40-week moving average line, but the slope of the line is neutral or flat. The OBV line on this time frame is inching up a little. The Moving Average Convergence Divergence (MACD) oscillator signaled a cover shorts buy signal in May and is moving up towards the zero line for a possible outright go-long signal. Movement in ARMH above $46 would greatly improve the chart and weakness below $37 would call into question the bull case.