Today is the day that the Semiconductor Equipment book-to-bill data is due out and the SOX index is also at a decision point as to whether or not its market leadership will be maintained. So we are on the verge of finding out whether or not this has been a buying opportunity in the general Semi sector.
That said, here is one item on my watch list. It is specialty chip maker, Lattice Semi (LSCC). We reviewed what looks like a multi-year bottoming situation and shorter-term charts a couple times previous and aside from one big spike, the stock has been very un-dynamic (and dead money).
Still, we are at it again with a monthly view of the big pattern, which still looks constructive. The right side of the pattern is taking the form of an uptrend channel and has been dropping in an orderly fashion to the channel bottom and support (green line) for over a year now.
LSCC’s earnings are being reported at the end of July and one might want to wait and see how that goes, along with the general view of the Semi sector. This does not have the look of something that is just going to catch fire tomorrow and run away.
This update is produced in a vacuum that does not consider the general high risk state of the stock market and other things going on. The function of NFTRH+ is to illustrate setups. The function of market participants is to make rational decisions, including not to participate if that is what feels right.
Buy Target: Trend line and lateral support at 5.50
Sell Target: Top of channel (10+) or where ever profit is deemed acceptable
Stop Loss: To suit risk tolerance below 5.50 on a loss of the channel line and lateral support
A reminder that chart based 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. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst.