• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Technology

Long Xilinx? Think Defensive

In the past year and a half XLNX's overbought sell signals have resulted in downward corrections.
By BRUCE KAMICH
Oct 25, 2017 | 03:39 PM EDT
Stocks quotes in this article: XLNX

Xilinx Inc. (XLNX) is rolling over in what will probably be a "normal" correction. A test of nearby support in the $68-$66 area could develop over the next few weeks. Let's review our indicators and charts this afternoon for guidance.

In this daily bar chart of XLNX, below, we can see that prices are off their best levels as prices have declined in recent sessions. Prices are above the rising 50-day moving average line but the line is not far below the market. The daily On-Balance-Volume (OBV) line has rolled over this month and tells us that sellers of XLNX have been acting more aggressive with heavier volume being transacted on days when the stock has closed lower.

The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.

In this weekly bar chart of XLNX, below, we can see that prices are above the rising 40-week moving average line which intersects around $64 now. The weekly OBV line has made three roughly equal peaks since January even though prices have made three higher peaks. This bearish divergence may prove a problem in the weeks ahead.

In the bottom panel is the slow stochastic indicator, which shows an overbought sell signal. In the past year and a half these overbought sell signals have resulted in downward corrections.

In this Point and Figure chart of XLNX, below, we can see the strong uptrend since last year. XLNX does not show the same distribution pattern currently as can be seen before previous pullbacks. This chart also shows an upside price target of $77, which may have to wait awhile.

Bottom line: Because XLNX does not show a lot of selling or distribution on the charts it may not pull back much despite the overbought readings from the stochastic indicator.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Technology | How-to

More from Technology

Cisco Is Rockin' Steady and Here's How to Invest in It

Stephen Guilfoyle
Aug 18, 2022 11:00 AM EDT

Don't expect the CEO to hit a grand slam, and don't expect him to make any huge mistakes.

Sloppy Wednesday, Parsing Retail Sales, Dissecting Fed Minutes, Shiny Apple

Stephen Guilfoyle
Aug 18, 2022 7:36 AM EDT

Plus, we check out how the market is handicapping future rate hikes and the latest GDP guesstimate out of the Atlanta Fed (it's lower again).

2 Big-Name, Single-Stock ETFs With a Foreign Twist Could Be on the Horizon

Mark Abssy
Aug 16, 2022 12:00 PM EDT

The potential offerings from Roundhill aren't geared solely to the retail investor but also could interest smaller institutions and other ETF issuers.

A Cannabis ETF and a Micro-Cap Stock That Have Grabbed My Attention

Bob Byrne
Aug 15, 2022 8:30 AM EDT

The ETF is showing signs of perking up and the micro-cap is a maker of electric outboard motors.

Don't Get Burned on First Solar's Rocket Ship Higher

Bruce Kamich
Aug 11, 2022 11:30 AM EDT

The stock may be getting to close too the sun.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login