Ambarella, Inc. (AMBA) manufactures semiconductors used in digital still cameras, camcorders, and video-enabled mobile phones. The stock soared over the past two years but now the air is coming out of the rally. Let's check on the charts.
In the daily bar chart of AMBA, below, we can see a choppy sideways trading range for the stock in November and December. The shares have recently broken below the lows of the past two months leaving everyone who bought in the past two months with a loss. The stock is trading well below the 50-day moving average line and fast approaching the rising 200-day line.
The trading volume has been fairly active the past five weeks and that can suggest a shift in ownership. The On-Balance-Volume (OBV) is starting to turn down but the Moving Average Convergence Divergence (MACD) oscillator has been weakening since October.