Analog Devices Blazes Higher
Four straight sessions of solid gains have pushed shares of Analog Devices (ADI) to a new 52-week high. The chipmaker has moved past its September peak of $41.80 Tuesday, and is now trading at its best level since the second quarter of 2011. Moreover, this impressive run has come on accelerating trade, and it may be picking up yet more momentum. In all, it appears set up well for more upside.
Analog Devices (ADI) -- Daily Source: TradeStation View Chart » View in New Window »Analog Devices is coming off a very solid bottom. After hitting fresh 2012 highs in mid-September, the stock was hit with a fairly heavy wave of selling pressure. The pullback dropped shares down to their 200-day moving average late in the month and, following a brief bounce, this key level was tested again in October. The 200-day line was pierced, but it did not give way. By late October the stock had rebounded, and was leaving behind multi-week lows near the $38 area. Last month the 200-day held again, thus allowing ADI -- unlike the Philadelphia Semiconductor Index (SOX) -- to put in a higher low. This consolidative action, which began in mid-August, appears to have developed into a significant base....105 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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