For those interested in the Semiconductor sector (I know of a few subscribers who are) here is the update on four items we have gone over quite a bit in the last couple of months.
First is Rambus, which I sold quite a while ago. Recall that the best target was 16 to 17 or so based on a measurement of the lows to the handle. A conservative target is 12, and RMBS is there now and getting over bought. FYI.
Next is SIMO, which I just bought back this morning. It popped on preliminary Q4 revenue outlook and then dumped with market on Friday. I used this morning’s weakness to buy it back. It remains in a fairly robotic uptrend. My very tight mental ‘stop loss’ is at the green dotted line.
PMCS is one that has been due for a test of support on. I bought it this morning. What I like other than the pattern’s projection to around 9 bucks is its neat ‘stop loss’ level, which is the green support zone.
Finally, there is SIMG, which is in a similar state to PMCS. I have not bought it but may do so soon.
The above are weekly charts and support levels are clear. That is by price and by weekly RSI. They are provided fyi for those interested in these types of stocks.
Note, you can take the very simple concept of support pullbacks and stop losses and apply it to any stocks you may favor. I have committed to showing more ideas as they come up and the above is what I came up with today.
Any trades are undertaken with the greater market’s status in mind. It is not broken by any means, but a topping process (and it is a process folks) continues to be expected in the coming months. Also on the plus side, the stocks above are noted especially in light of the SOX still residing above 10 year support.