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Semi-Charmed Kinds of Stocks

Posted on May 1, 2009 by Adam

I love the semis! The semiconductors that is. These stocks have been on fire - so much so that they have been hard to buy. But now we’re seeing a real pullback and buying opportunities in semiconductor stocks are starting to emerge.

What you will notice in these stocks is a strong upward trend followed by a tight period of consolidation. Most of these charts have been forming nice little pennants. Others are flagging right to trendline support. Some of these have good looking PNF (Point and Figure) charts too!

Try to wait for breakouts on the pennant patterns. However, if the market continues to weaken today, I will likely take down one of the following stocks. So, without further adieu, some Semi Chart Lovin’:

AMAT broke out from an ascending triangle. Presenting today with a nice looking dip to buy into.

ATHR - forming a pennant right at trendline support.

CCMP - already broken out from its pennant pattern. Look to buy near the 27 level, which is both the apex of the pennant/triangle and the area of previous highs. An intriguing point and figure chart too!

CYMI - nice dip to buy

HITT - a flag, or maybe a pennant, forming right at trendline support.

STM - another pennant. Wait for a breakout.

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