Pinch zooming the bull flag in Synaptics higher

• Posted by Greg Harmon
• on October 5th, 2015

Synaptics makes the technology that allows for all sorts of touch screen commands, including the pinch zoom, demonstrated by the late Steve Jobs above. Revolutionary technology that you did not imagine 10 years ago and cannot live with out now.

Their stock has not had such a great time though since making a high in June. Early last week it was off about 38.2% when it jumped higher after rejecting a takeover by a Chinese company.

The move took the stock over the 200 day SMA for the first time since August 3rd and drove the momentum indicators into bullish ranges. The price moved outside of the Bollinger Bands® and it started to consolidate.

That consolidation, in a bull flag, makes it interesting for a trade. The classic bull flag sees declining volume after a move up with price action either flat or falling slightly. Just like in the chart above. A break of the flag to the upside targets a move higher equal to the move into the flag. In this case up to the prior consolidation range and previous high.

Funny how that works huh? With over 10% short interest still it could happen as fast as the last move. Be prepared for the break.

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