zAngus

AXCELIS TECHNOLOGIES - Bollinger Breakout Above Resistance Area

Long
zAngus Updated   
NASDAQ:ACLS   Axcelis Technologies, Inc
With the global semi conductor shortage I thought I would have a bit of a look around at some of the equipment suppliers and see if any of them were looking interesting.

From their website: At Axcelis, we have a single goal: to help semiconductor manufacturers achieve the highest quality and yield, with the lowest cost of ownership. We deliver on that goal with ion implant platforms based on unique enabling technologies that provide unmatched purity, precision and productivity. The result: competitive advantage for our customers—and rapid growth for Axcelis. (Source: https://www.axcelis.com/about/about-us/)

So why do I like Axcelis.

I thought for the fun of it I would give a bit more insight into what I look at. I can do all of the below in one quick glance at the chart and don't need to use most of the indicators, but they are nice for confirmation.

  • I found Axcelis by using the TradingView Screener to look for Bollinger breakouts with higher than normal volume .
  • The upper and lower Bollingers are starting to move apart indicating growing momentum.
  • They are up 217% year to date showing positive momentum and investor belief in the business.
  • They have broken out above a previous significant resistance area .
  • The middle Bollinger line (20 period moving average) is horizontal, showing price has been stable moving sideways for a while consolidating and building a good base.
  • The RSI is moving up through 60 showing momentum and still at a good value area.
  • The recent volume is significantly higher than its 14 day moving average - so much higher than normal.
  • The On Balance Volume is moving away from its 14 day moving average showing buyers are currently in control and building.
  • The MACD has crossed up and is accelerating away from its signal line - and the histogram is building a darker green hill also showing momentum.
  • It is past earnings so I don't have to worry about earnings surprises.
  • I have read their about us on their website twice and I still don't know what they do - so must be high tech :)
  • Craaaazy people might look at the chart and call it a double-bottom or a W pattern which is often bullish .
  • Best of all it is up 1.7% in the pre-market confirming most of the above.

On the downside, there is always a chance that the price will pull back to re-test the former resistance line and perhaps re-run from there.

As such I would put a stop loss a bit below that and see how it all goes. If it ran for a while I would move to a 17% Trailing Stop Loss to it to hang onto it for a while.

Fingers crossed.

Hope the above was useful. Comment like if so :)



Comment: With the initial weakness in the market yesterday it pulled back almost to the resistance line before recovering. I feel like this is a good sign for further gains.

Comment: Big pullback with the wider market and back down to its 20 day moving average. I still haven't entered the trade yet as it didn't reach my buy target, but if it moved back up above $40 I'd be interested in having a look again.

Comment: Didn’t get to $40 so still sitting in the sidelines.
Comment: Back up above $40 again, and over its 20 MA so back on the watch list for signs of strength.

Comment: Took a bit to trigger, but there we go, nice 15% run.


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