There are many different ways technicians look at price movements and today I will focus on, and give a few past examples and ones still in play regarding the round numbers. Some are more important than others, one a name traveling through 10 which will tend to make institutions more willing to invest. The climbing above the round 90 number which will often signal a move to par and above. And here we will look at the 20 figure which has names shedding their teenager status.
One would have to have been hibernating underneath a rock for a long period of time to miss the strength in the semiconductors or even more specifically the equipment and testing plays. Below is a great example, others include MKSI and UCTT one of which is looked at in depth later in this post. This name is up by a combined 10% the last 2 weeks now and this one has added another 1% thus far. Below is how we examined ENTG in our Monday 2/6 Game Plan and it has jumped more than 25% since.
Stocks that can be bought as they break above the round numbers are ENTG. ENTG is a semiconductor play higher by 10% YTD and 68% over last one year period. Earnings have been mostly higher by 3.5, 11.4 and .5 on 2/2, 7/27, 4/26 and dropped 4.6% on 10/26. The stock is among a very strong sector and is higher 8 of the last 13 weeks beginning with week ending 11/11 which jumped 14.7%. It has displayed great action POST breakout from double bottom trigger of 17.68 on 11/11. The stock has been comforted by its rising 50 day SMA numerous times the last couple months and look to enter ENTG with a buy stop above the round 20 number Friday at 20.20 (Thursday and Friday were above intraday but unable to CLOSE above).