During Thursday's Mad Money program, Jim Cramer told viewers about the market leaders that included a mix of names that made him take notice. One of those was Qorvo (QRVO) , the semiconductor company.
Let's pay an overdue visit to the charts. Way back on December 17 was our last review where we wrote that "Traders who are long QRVO from our previous recommendations should raise stop protection to $148 from a close below $110. Our new targets are the $174 area, followed by $200 and then $212."
In this daily bar chart of QRVO, below, we can see that prices reached our $200 price target and then retreated in May. Prices firmed into June and look like they made a higher low versus May. A new high for June will restart the uptrend - higher lows and higher highs. Prices have edged back above the 50-day moving average line.
The On-Balance-Volume (OBV) line looks like it is resuming its advance as buyers are acting more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is ready to cross above the zero line for a new buy signal.
In this weekly Japanese candlestick chart of QRVO, below, we see a mixed to positive-looking picture. Prices are in an uptrend above the rising 40-week moving average line. There are a number of lower shadows this year below $170 telling us that traders have rejected those prices and telling us that the path of least resistance is higher.
The OBV line has been steady for several months. The MACD oscillator is pointed down but could narrow in the weeks ahead.
In this daily Point and Figure chart of QRVO, below, we can see a potential upside price target of $208.
In this weekly Point and Figure chart of QRVO, below, we can see a longer-term price target in the $332 area.
Bottom line strategy: I will assume that traders may still be long some shares of QRVO as our $212 price target was not reached. Traders should raise stop protection to $160 from $148. The $208-$212 area is our first price target now and the $332 is our longer-term objective.
