On Semi Missed the Bear Market Memo
Many technology stocks have been in a bear market since last fall, but On Semiconductor seems to have missed the memo.
Notice how the maker of automotive chips barely fell below its 200-day simple moving average (SMA) in April and May. That’s a potential sign of relative strength when you consider that the Nasdaq-100 and Philadelphia Semiconductor Index were about 30 percent off their highs.
Second is the bullish gap from November 1. ON tested and successfully bounced at this zone around $51.33 in late January, late April and early May. That suggests new support has been established above the previous highs.
Third is the mid-May high around $59. Prices held that level last week. Has old resistance become new support at an even higher point?
Next, MACD has been steadily rising since the beginning of last month.
Finally, Bollinger band width is inching higher after tightening. That could mean prices are getting ready to expand again.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
Notice how the maker of automotive chips barely fell below its 200-day simple moving average (SMA) in April and May. That’s a potential sign of relative strength when you consider that the Nasdaq-100 and Philadelphia Semiconductor Index were about 30 percent off their highs.
Second is the bullish gap from November 1. ON tested and successfully bounced at this zone around $51.33 in late January, late April and early May. That suggests new support has been established above the previous highs.
Third is the mid-May high around $59. Prices held that level last week. Has old resistance become new support at an even higher point?
Next, MACD has been steadily rising since the beginning of last month.
Finally, Bollinger band width is inching higher after tightening. That could mean prices are getting ready to expand again.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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