Three Semiconductors Recent Pullback Creating Opportunity

Three semiconductors that we have been watching are creating an opportunity short term. A few that we mentioned yesterday are also adding to the mix. The latter group in the solar and renewable energy industry group are consider semiconductors by some investors.

Semiconductors

Microchip Technology Inc develops, manufactures and sells semiconductor products used for a variety of embedded control applications. It also provides license Flash-IP solutions that are incorporated in a range of products.

MCHP is on the watch list this week, with the company having reported an earnings beat of on August 03.

Microchip Technology

Microchip Technology (MCHP) reported 1st Quarter June 2017 earnings of $1.34 per share on revenue of $972.1 million. The consensus earnings estimate was $1.23 per share on revenue of $946.1 million. The Earnings Whisper number was $1.29 per share. Revenue grew 21.6% on a year-over-year basis.

Micron is currently trading below its daily 9/20ema, therefore we are anticipating some resistance overhead. That said, the 60-minute chart is about to trigger, if price action moves through the green line on the chart below.

Micron MU

This 54 period exponential moving average represents the daily 9ema, as viewed in the context of the 60-minute time frame.

AMD is showing a similar pattern on its 60-minute chart. The company reported earning and a surprise of 50% on a smaller than expected loss. The recent pullback is being bought, as we can see in the volume spikes.

AMD

AMD – Income Trade

We posted a potential income trade on Sunday that we still like going forward, where we are considering AMD Oct17 14 Calls.

Trading pre-market 13.50 (+0.07)
STO AMD Oct17 14 Call 1.15 or better

STATIC RETURN % (IF UNASSIGNED) 7.25%
COVERED CALL RETURN % (IF ASSIGNED) 12.55%
BREAK EVEN $12.33


Solar Energy – Semiconductors

We also looked at solar and renewable stocks on Monday morning, as the solar and renewable energy ETF was poised to breakout on Monday. TAN and JKS headed higher.

JinkoSolar JKS

With NVDA highly anticipated earnings on Thursday (+2.46 PM) we expect semiconductors will be in focus for the next few days.

Happy Tuesday,

Vinny

More: Renewable Energy



Disclaimer:  Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Vinny Gambini

Trade Fundamentals w/ Technical Analysis - CANSLIM method using high probability setups and Ichimoku Trend Analysis. Architect, Family Man and Father of three.