There is a curious situation brewing in a small-cap supplier of semiconductors. I say “small cap” because this once mighty mid-cap company has been torched down to a market capitalization of just $1.5 billion. It began last year at $89 per share, and currently sits at $24. Compared to the broader semiconductor space, Semtec ( NASDAQ:SMTC ) has grossly...
- Large areas of supply at current price from prior trough may compress price following tonight’s earnings.
- 200 SMA enveloping price from above.
- Fundamentally priced to perfection and will need to revise up to prevent price decline
- Targeting a move to $63 post earnings
Higher probability of downside move with Lulu earnings scheduled evening of 09/01:
1. Multi-month head and shoulders was cleanly pierced and then retested with downward pressure from its base.
2. Multi-week down trend off of 200 SMA.
3. Multi-day weakness leading to today, with overall rounding of price to the downside.
4. Multi-year support would occur...
