The semiconductor group is on the mend and looks strong with plenty of consolidation within. NXPI looks to have put in a nice double bottom at the 72 level on the 8/24 and 10/29 sessions and rallied nearly 11% this week. MTSI rose almost 16% the week ending 11/20 and recorded a bullish hammer week this one. AMBA, a former best of breed play has lagged, but looks to be strengthening as the bottoming process is underway. Below is exactly how the name was presented in out 11/16 Game Plan then the second chart examines an up to date view. Anyone who would like a full copy of our monday Game Plan please email me at firstname.lastname@example.org.
AMBA is a chip play which has been slaughtered down 61% from recent 52 week highs but is down 1% YTD and higher by 7% over the last one year period. Earnings have been mixed with losses of 8.5 and 1.7% on 9/2 and 12/5 and gains of 3.7 and 7% on 6/3 and 3/4. It has suffered mightily after a double top at the 128/129 number on 6/18 and 7/23 and has dropped 12 of the last 16 weeks. The stock is hovering near the round 50 figure which is an important level dating back to the first 2 weeks of 2015 and the weeks ending 2/13-20 with all those weeks CLOSING above 50. It makes us a little nervous of the recent bullish Barron’s article but stocks will find comfort at the very round numbers of 50 and 100. Look to enter at 50.20.