• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Wolfspeed Could Start to Run With the Pack

Here's how aggressive traders can play this tech stock.
By BRUCE KAMICH
Jun 24, 2022 | 07:55 AM EDT
Stocks quotes in this article: WOLF

Wolfspeed (WOLF) is a developer of wide bandgap semiconductors that adopt silicon carbide and gallium nitride technologies. Shares of this cutting-edge company were raised to "buy" by a major sell-side firm Friday. Let's check out the charts because I certainly do not understand the technology.

 
In the daily bar chart of WOLF, below, we can see that the shares have been under selling pressure since November. Prices made a new low this month and trade below the declining 50-day moving average line and the declining 200-day line.
 
The On-Balance-Volume (OBV) line has been weak since April and tells us that sellers of WOLF have been more aggressive than buyers with heavier trading volume being executed on days when WOLF has closed lower.
 
The 12-day price momentum study shows a higher low from May to June even though prices made a lower low. This difference in movement between price and indicator is a bullish divergence and is potentially a sign of higher prices to come.
 
 
In the weekly Japanese candlestick chart of WOLF, below, we see a mostly bearish picture. Prices are in a downtrend and trade below the declining 40-week moving average line. I can see a harami star pattern (a harami with a doji) but no bullish confirmation just yet.
 
The weekly OBV line is bearish and so is the MACD oscillator.
 
 
In this daily Point and Figure chart of WOLF, below, we can see a potential downside price target in the $39 area. A trade at $64.14 can start to improve the picture.
 
 
In this second Point and Figure chart of WOLF, below, we see a downside price target of $38.
 
 
Bottom-line strategy: Aggressive traders could probe the long side of WOLF after the stock closes above $66 to give us some confidence that a low has been made. Risk to $59. Our price target is the $90 area.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Semiconductors & Semiconductor Equipment | Technology | Analyst Actions

More from Stocks

Don't Be Misled by Headlines of a New Bull Market

James "Rev Shark" DePorre
Jun 9, 2023 7:11 AM EDT

Media stories about a new bull market based on an arbitrary definition should be a warning rather than a celebration.

Tesla's Rally Gets More Juice Thanks to General Motors

Bruce Kamich
Jun 9, 2023 6:46 AM EDT

The electric vehicle maker's stock already was trending higher and is receiving a boost from a deal with GM to use Tesla charging stations.

The Bull Is Out of the Gate

Helene Meisler
Jun 9, 2023 6:00 AM EDT

Look how quickly we got bulled up. Let's check sentiment, the surveys and the International Securities Exchange call/put ratio.

A Roundabout on Wall Street

James "Rev Shark" DePorre
Jun 8, 2023 4:25 PM EDT

The big caps turn out big again, with Apple, Microsoft and Nvidia at the wheel.

Ignore Carvana's Backseat Drivers

Ed Ponsi
Jun 8, 2023 1:09 PM EDT

I'll take a ride with CVNA, but I will wear my safety belt -- and know when to get out.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:19 PM EDT CHRIS VERSACE

    AAP Podcast: This Company Is Not Going 'Solo'

    Listen in as I talk with the very diversified Solo...
  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login