Cypress Semiconductor Corp. (CY) was last reviewed in March. Prices looked strong in March but that did not last very long and prices hit our recommended sell stop below $16 by the end of April. Taking losses is part of investing - no approach or method is 100% perfect.
Let's take a fresh look at the charts and indicators again this afternoon.
In this updated daily bar chart of CY, below, we can see a relatively wide trading range pattern bounded mostly by $14.50 on the downside and $18.50-$19.00 on the upside.
Both the 50-day and the 200-day moving average lines are bearish and the 50-day line has crossed below the 200-day line for a bearish dead cross.
The daily On-Balance-Volume (OBV) line was in an uptrend into August and has traded sideways the past two months - no signs of aggressive selling yet.
In the lower panel is the Moving Average Convergence Divergence (MACD) oscillator which is in a bearish mode below the zero line.
In this weekly bar chart of CY, below, we can see that an uptrend from early 2016 has been broken. CY is below the cresting 40-week moving average line.
The weekly OBV line has been declining the past three months telling us that sellers of CY have been more aggressive.
The trend-following MACD oscillator is below the zero line for an outright sell signal.
In this Point and Figure chart of CY, below, we can see a possible downside price target of $12.50.
Bottom line strategy: CY could weaken further to the Point and Figure price target of $12.50 as I find few technical reasons to probe the long side at this time.