Price has been rising in a clear channel which I'm betting to hold backed with positive analyst expectations. Alternative entry is to wait if price gets closer to the lower trend line.
POWI head and shoulders similar to the pattern NVDA had as it confirmed on Jan 23 when it broke above the right shoulder neckline. One significant difference however is that after reaching a high of $91.98 it's been forming a falling wedge just above the neckline without violating it.
The Semi conductor manufacturer has some impressive numbers ROA 16.1%, FCF/ Share 0.92 and plenty of cash. Looking at the chart, the trend is still up and the price just bounced off support at 87.25$. Going long here, 1st target around 97$ then previous highs around 110.40$. A close below 87.25$ will invalidate the scenario
Going to buy into strength , I would like to see this name break 111.10 , so set a buy stop . Attached a stop loss order at 107.68.
If it works will sell half at 2R , strong name so far , liking it .
Price just broke up a monthy range so we are waiting the price to rotate above this resistance (62,53) or maybe a retest at 61,69 to take longs until 68 price
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Long 100 $ASML
Short 656 $POWI
Mean Reversion Time: 6 Trading Days
Based on my analysis:
1. Today, POWI has made an additional price in history.
2. POWI is in BULLISH trend based on three MAs.
3. Stochastic shows that POWI is still BULLISH bias.
4. It is expected that POWI will increase to 128 USD.
Syeikh Hafiz
Stock Market Analyst
