Strong fundamentals combined whith an opportune graphical setting.

The supplier of semiconductor-based products enjoys an excellent Surperformance rating, which underlines its revenue growth and its sound finances. Indeed, the company has USD 385 million of cash and has large enough profits that enables it to generate substantial earnings. The Reuters consensus has set an average target price of USD 60.6, ie a 43% increase.

Technically, the security has recently experienced a significant drop. However, weekly moving averages remain well oriented, and the recent fall offers us a trading opportunity (the security has been recently oversold). The security is very close to its midterm support line at USD 42, which acts as a protection wall from the downtrend. This area is expected to annihilate bearish possibilities and thus we could benefit from a technical rebound.

This is why investors can open long positions at current prices and aim in the first instance the USD 45.49 mid-term resistance (7% increase). A stop loss should be placed at USD 41 to avoid heavy losses.