ON Semiconductor (ON) has been showing superior relative performance versus other chipmakers. Let's check out the charts and indicators to see if this current movement can be sustainable.
In the daily bar chart of ON, below, we can see that the shares have traded sideways to slightly since November. The long consolidation pattern shows more downside tests than upside tests and thus the path of least resistance is going to be up, in my opinion. Prices tested and broke the rising 200-day moving average line in April and May but now prices are firmly back above this longer-term indicator.
Despite the sideways movement of ON, the daily On-Balance-Volume (OBV) line has been climbing and is acting as a leading indicator. We should see ON break out to new highs soon. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a buy signal as it has moved above the zero line.



