NFTRH+; a Semi Company on a Technical Buy Setup

This update is for anyone who has an interest in Silicon Motion, a Taiwan-based semi company that has often appeared in my holdings.  It sits there now.  At the last earnings release SIMO’s momentum had been lagging due to tightening supplies of NAND chips.  Guidance was reduced as a result.  More recently, the company guides at the higher end of the previously guided range.  Do due diligence as needed if interested.

Keeping it very simple, I am back to the break even point on my position after deciding to keep holding despite SIMO’s approach of upside resistance (as noted in NFTRH a few weeks ago).  That is because I am not a day trader but rather, a portfolio balancer.  This was held for speculative long exposure.

The daily chart shows the tolerance of my hold, which is around 44 and the rising SMA 50.  That would also be a buy area for anyone interested, who thinks the stock has good forward prospects.  It is also a clear ‘stop loss’ point of lateral support and the lower channel line, along with the SMA 50.  A daily close below 43.70 would be most unwelcome.  That was the low point of the cluster of candles from early March.


We’ll keep it informal and just note that a buying opportunity for those who’d want to be long is setting up, but that a strict stop loss should be considered on a loss of 43.70.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. 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. Due diligence is your responsibility.