Four Chipmaker Stocks That Are Basing: INTC, TXN, SWKS, MSCC

David Katz

When it comes to scouring for opportunities in the market, we all would love to find the next big company that will shatter all others. However trading has taught me that sticking to what you know best always works – in process and companies.

According to the Investors Business Daily (IBD), stocks in a base equal a great buying opportunity… especially if the fundamentals are strong. And so today, I want to share 4 chipmaker stocks that may offer opportunity if their overhead buy point is triggered. Note that each of these were highlighted in a recent IBD video.

The 4 chipmaker stocks I’d like to highlight are Skyworks Solutions Inc. (SWKS), Microsemi Corporation (MSCC), Intel Corporation (INTC) and Texas Instruments Inc. (TXN). And, as I said, all have buy points above their current price (as highlighted by IBD), so you’ll need to be patient and continue to do your homework.

chipmaker stocks chart swks mscc intc txn

While past performance is never indicative of future setups and performance, time and time again, my TREND strategy if timed properly can be an opportune timing in the market. This said, viewing the prior setups is looking for the same exact setup to the right of the chart and using the Heikin Ashi bars to keep you in the TREND.

Skyworks Solutions Inc. (SWKS)

skyworks stock chart swks chipmaker stocks may 7 2015

With an IBD buy point of 102.87, current price action in a downtrend with HA bars in TREND. With a buy point above, traders should wait for the 5ema to cross the T3 and the Heiken Ashi bar to be a solid body, tail up. Stop at the most recent swing size low. Entry will likely be below the IBD buy point and in TREND.

Microsemi Corporation (MSCC)

microsemi mscc stock chart chipmakers may 7 2015

With an IBD buy point of 37.51, current price action nearing a 5 ema cross of the 34 downside, and T3 in a downtrend I am inclined to say that traders should stay out or remain short – this is nowhere near a buy point. With a 94 IBD composite rating strength, this chipmaker stock should follow to the upside eventually. The setup will be on the 5 above the 34ema and crossing the T3 moving average. The Heikin Ashi bar should be like prior entry with solid blue body, tail up.

Intel Corporation (INTC)

intc stock chart intel chipmaker stocks may 7 2015

With an IBD buy point of 37.51, prime time to be in this stock. Entry may be forming now on a 5/34ema cross and Heikin Ahsi bar to the upside. Stop at recent swing size low. Watch overall market conditions as Intel’s IBD composite rating is not as high as other chipmaker stocks (with a score of 81).

Texas Instruments Inc. (TXN)

txn stock chart texas instruments chipmaker stocks may 7 2015

With an IBD buy point of 60.09, a downtrend in play with a previous 5/34 cross to the short side, yet the Heikin Ahsi bars are in TREND – this leaves room for a turnaround if the breakout point occurs. Stick to the strategy and wait for the 5 to cross the 34ema upside and T3/HA bars to be in TREND to the long side.

Remember to always trade with discipline. The best of trading to you.

 

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The author has no positions in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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