Similarly (to the INTC idea), a smaller yet high quality Semiconductor company is LSCC. It has a valuation that is ahead of most, due to its quality status and solid fundamentals (according to Funda sources) in earnings, growth and strategic markets. But again, we are about charts and this one says LSCC has done what the previous update projected with Intel. It has broken above a base that in this case goes back 10 years.
For a more dramatic view, the ‘portrait’ view…
I had been trading LSCC (well and not so well) and do not really like the look of the daily chart. Considering that the US market is getting over baked, one might hope for a knock down in US stocks and a test of support by LSCC around 7. Or if one does the research, likes the company and is willing to accept 10% potential short term downside, the current level could be bought for the big picture view. It is up to the individual. We will just review ideas.
Buy Target: A hold of big picture support at around 7
Sell Target: 13 (or anywhere on the way up)
Stop Loss: A failure of support
Note (7.10.14) LSCC could use what may be a developing market correction to hit the 7 buy target. But note that earnings are out later in July, which could also be a factor (pos. or neg.). As I did with Intel, I personally jumped the gun on LSCC in buying before the target, but given the market environment was forced to take a loss. INTC is still held with protection via a short against the semiconductor sector.