Impressed by Cypress
- Posted by Greg Harmon
- on August 31st, 2016
The Lone Cypress Tree at Pebble Beach is a symbol of one of golf’s greatest courses. It is like no there, alone against no peers. It is also in the corporate logo for Cypress Semiconductor, the San Jose based technology company. My bullish scan of stocks has been dominated by technology names for over 1 month now. And today Wednesday with the pullback in the market it has dwindled down to only 7 names. 6 are in the technology space and Cypress Semiconductors is one of them.
The chart below explains the story. It shows how Cypress Semiconductor stock ($CY) fell from a high in March of 2015 to a low eventually in February of this year. It has had an uphill run since then. It crossed the 50 day SMA first in March and then the 200 day SMA in May. In the start of June it made a peak near a 50% retracement of the move lower. This happened as the chart printed a Golden Cross (the 50 day SMA crossing up through the 200 day SMA). The pullback found support at the 200 day SMA and reversed higher.
It made another new high as it continued the reversal off of the bottom. July 29th saw a shooting star candle mark a top and reversal back to the rising 50 day SMA. And then after some consolidation, a push back to that top. Until Wednesday it is pushing higher again. The Measured Move out of the recent consolidation suggests a target to 13.50. Momentum supports continued upside with the RSI in the bull zone and rising while the MACD is crossing up. As it is pushing higher there have been aggressive call buyers at the September 13 strike as well. Perhaps it is time to climb out on that rocky knoll and join it.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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