Silicon Image (SIMG) is another Semiconductor company (HD & Mobile HD connectivity) that has been working its way up from a basing pattern. It is another you may have noticed among my holdings (Roth IRA) as I bought it based on the look of the basing pattern, not the breakout above resistance, which just happened yesterday. NFTRH+ focuses on real events, not hope-for events.
Yesterday the stock went up through resistance on volume, which is usually a good sign. I have painted that line green (as in, support), but it should still be considered resistance until 5.20 is tested and held. MACD is crossed up and is 0+ and RSI held 50 and turned up. The target is around 5.70, although the SMA 200 is lower and a gap (with visual resistance) is higher.
SIMG found initial resistance on yesterday’s surge at the points noted by the red arrows, which was normal. Considering the building volume, if 5.20 holds as support we might expect 5.40 to be exceeded next time. The target is only about 10% higher, but it is the setup that looks interesting here, not a stock that looks like it would make anyone rich.
Buy Target: 5.20 on a hold of support
Sell Target: 5.70
Stop Loss: Below 5
I remind you that NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested.
