TriQuint Setting Up as a Trade
TriQuint Semiconductor (TQNT) makes semiconductors used in mobile devices. In a piece on May 23, I noted that a competitor in the space, Skyworks Solutions (SWKS), was strengthening against the backdrop of a weaker technology sector, and since then the stock is up 12.5% (5.5% since the buy recommendation), and is testing it's March 2012 high. TriQuint is also testing resistance, and with a 13.6% short interest and contracting Bollinger band width, the potential exists for a volatile move.
The weekly chart shows the stock dropping sharply in the last half of 2011 and then basing in a wedge formation, with resistance at the 68% retracement of the 2009 low and the 2011 high. It made a higher low in May, and stochastics are moving out of an oversold condition. Overall volume remains weak, however, and money flow on this time frame is negative....227 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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