In his No-Huddle Offense segment of Mad Money on Wednesday, Jim Cramer told viewers that this is a stock picker's market. That means we can't talk about industries and sectors as a whole, we need to talk about individual stocks. In the case of the semiconductors, there are clearly winners and there are clearly losers.
The winners are companies like Qorvo Inc. (QRVO) .
We looked at QRVO back on September 10, and wrote that, "Risking a close below $110, traders could go long or add to existing longs at current levels. A close above $135 will be bullish and open the way for gains to the $160 area."
In this updated daily bar chart of QRVO, below, we can see that prices have continued their uptrend from the March low. Prices are trading above the rising 50-day moving average line, as well as the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows a rise from April, telling us that buyers of QRVO have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory for this indicator. The two moving averages that make up this indicator have begun to narrow and could soon give us a new buy signal.
In this weekly bar chart of QRVO, below, we can see a bullish picture. Prices are in an uptrend and trading above the rising 40-week moving average line. The weekly OBV line shows a strong rise from June of 2019. The weekly MACD oscillator is maintaining a bullish alignment.
In this daily Point and Figure chart of QRVO, below, we can see a modest upside price target in the $174 area.
In this weekly Point and Figure chart of QRVO, below, we can see that the software is projecting a tentative price target in the $212 area.
Bottom line strategy: 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.