Stock up on These Chips Before the Game

• Posted by Greg Harmon
• on February 1st, 2011

With the Superbowl just a few days away it is time to start shopping for the party. As you roam through the store here are some chip stocks that you might want to toss in your basket as they seem ready to break out higher based on their technicals.

Analog Devices Ticker: ADI

Analog Devices has had a strong run higher out of the 7 month basing period up to September 2010 to a base at 38. It has recently established a tight consolidation range over that base with a top at 39.90 and is pressing against it. The Relative Strength Index (RSI) has bounced off of the mid line a couple of days ago confirming it is still in a bullish phase. The Moving Average Convergence Divergence (MACD) indicator is improving and is about to cross bullishly. These bullish signals near the resistance level suggest a break higher may be coming. If the stock can get over 39.90 then the first target would be 42 on a symmetrical move to that from 38 to 39.90.

Altera Corp. Ticker: ALTR

Altera is also testing its recent top near 39.75 from early January after pulling back. It has an RSI that is rising after bouncing off of the mid line, confirming its bullish trend continues. The MACD is starting to increase and has just crossed up. Another bullish signal. If Altera can now push through 39.75 it also has an initial price target in the 42 area.

Intersil Holding Ticker: ISIL

Intersil is creating a triple top at 15.55. It also has a rising RSI that barely spent time below 50 and a MACD that has been improving and is printing a bullish cross. If it can get through 15.55 then the target on a measured move higher is 18. This stock reports earnings after the bell Wednesday, so keep that in mind when reviewing it.

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