Similar to some other semiconductor stocks, Skyworks Solutions (SWKS) had a relatively shallow correction this year followed by a saucer-like bottom. This bottom (see the chart below) could propel SWKS higher into early 2016. (Read Jim Cramer's take on the surge of semiconductors.)
This chart of SWKS, above, shows a bearish death cross for the 50-day and 200-day moving averages in September; it also shows how SWKS has closed back above the 50-day average. The On-Balance-Volume line is making some improvement and the Moving Average Convergence Divergence oscillator is close to moving above the zero line.
This view of SWKS, above, shows a flat 40-week moving average. A flat On-Balance-Volume line, despite a $30 decline, suggests that investors have not yet liquidated their long positions. The trend-following MACD oscillator is about to generate a "cover short" signal in the lower panel. Traders could go long SWKS here, or on a dip back toward $80. A sell-stop at $74 should be fine for now. A rally back into the $100 to $110 area is our initial target.
Dec. 1, 2015 | 3:45 PM
Qorvo Has Found Its Level and Is Ready to Climb Again
- Buy a pullback around $55.
Analyzing a security that does not have a bit of trading history under its belt can be difficult for the chartist who depends on price and volume history to reach a conclusion and make a price projection. (Read Jim Cramer's take on the surge of semiconductors.)
In this chart of Qorvo (QRVO), above, we can see prices made a slight advance for six months and then a downside gap at the end of July disrupted the pattern. Prices were approximately halved from late June to late September. However, a shift began in early November. The On-Balance-Volume (OBV) line turned up. Prices gapped up and over the flat 50-day moving average. Last, we can see a bullish divergence between the price action and the momentum study in the early August/late September time frame.
With QRVO, a key holding in the Trifecta Stocks portfolio, on a steady technical footing, we would look to buy a pullback to around $55 and risk to $49. We look for a test of the 200-day moving average, and maybe the filling of the late July gap in the weeks ahead.
Dec. 1, 2015 | 3:35 PM
Cyprus Semiconductor Will Rebound From Recent Dip
- Add on a close above $12, with $9.50 as a risk point.
Shares of Cyprus Semiconductor (CY) were cut in half this year, but a magician is slowly putting them back together and there is more to the show. (Read Jim Cramer's take on the surge of semiconductors.)
CY reached its nadir at the end of October, creating a bullish divergence on this chart, above. Compare the low in August and the lower low in October versus the higher lows on the momentum study over the same time period. CY rallied over its 50-day simple moving average in October and the average line is flat to rising. The trend confirming On-Balance-Volume (OBV) line bottomed at the beginning of October and suggests that fresh accumulation has occurred the past two months.
This chart of CY, above, shows that dips under $9 have been brief and have represented buying opportunities. The OBV line has turned up and the Moving Average Convergence Divergence (MACD) oscillator has given a "cover shorts" signal. Traders could take an initial long position in CY here and add on a close above $12 where the 200-day average intersects. $9.50 would be our risk point.
Dec. 1, 2015 | 2:47 PM
Avago Technologies Is Ready to Go Higher
- Our short term price target is $150, while long-term we can see the stock heading towards $180.
Some stocks correct lower and some stocks correct sideways. Avago Technologies (AVGO) made a sideways correction the past five months and it is now poised to make an assault on its 52-week high. (Read Jim Cramer's take on the surge of semiconductors.)
While the overall pattern of trading for AVGO has been sideways in the chart above, the pattern since August shows higher lows being made in August, October and November. Prices crisscrossed the 50-day and 200-day moving averages, but recently pushed up above both of these lagging indicators. In the lower panels, we can see the On-Balance-Volume (OBV) line creeping up and the Moving Average Convergence Divergence (MACD) oscillator in positive territory (above the zero line).
In the longer-term view of AVGO above, we can see a strong, multiyear uptrend that has attracted investors. The 40-week moving average is still pointed up and the MACD oscillator is poised for a bullish crossover above the zero line. A retest of the $150 high is our short-term target, while a breakout to new highs could bring $180 in play as a longer-term price target.