Don't Ignore This Chart

IPG Photonics (IPGP) - Charting Upcoming Triangle Support

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IPGP resides in the semiconductor industry and is pulling back with this industry group as June has proven to be a very rough month for this space.  I'm expecting that to soon change and IPGP could be a direct beneficiary.  But first, there's some technical business that might have to be taken care of.  After a very strong uptrend that ended in mid-2011, IPGP consolidated in a bullish long-term ascending triangle.  That pattern finally resolved to the upside in early 2015 and the recent selling could be nothing more than a retest of a key breakout level.  The selling has been on heavier volume the past couple trading sessions and that could create more stops being triggered and further weakness in the near-term as April price support is being violated intraday today.  I'd expect the 77-80 area to provide nice support in the days ahead.  Look for a potential reversal in this area.  Check out the chart:

Happy trading!

Tom

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015. Learn More
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