As the technology names pull away from the rest of the market, July has more semiconductor names set up to break out to new 52-week highs. The move in technology has been remarkable, and it looks set to continue until something changes!
AMD took off on Thursday, and the chart is shaping up nicely. First of all, the SCTR ranking has been staying in the top 75% for the last 2 years, with a couple of brief dips lower. The relative strength is starting to break out compared to the SPX on the purple panel. Price keeps hitting resistance in the high 50s. Will this time be the push through to new highs? Price bounced off the 40-week moving average last week, as did the main uptrend line. The PPO has stayed in positive territory for years since the uptrend started. That's just bullish.
The next one is XLNX. The stock spent most of 2019 in a downtrend, but has been accelerating higher for most of the year. The SCTR is hitting a new 52-week high this week. There was a breakout to new 9-month highs on the relative strength; that's a nice confirmation. Price is very close to new 52-week highs and the PPO is just moving above zero - a textbook setup.
Texas Instruments looks like it is ready to surge to fresh new highs as well. The chart is poised for a new high, while the SCTR is hovering around the top quartile above 75. The relative strength continues to improve and is close to new highs. A close above $133 would be an all-time-high weekly close. I like the PPO moving up above zero after breaking the momentum downtrend. The sudden surge in June broke the PPO downtrend, but the stock has migrated sideways since. This looks like a nice breakout setup.
I'll be presenting as part of StockCharts Mid-Year perspective "Charting the Second Half" with David Keller next Saturday (July 18th). That promises to be a great event with lots of work being presented throughout the week. Follow the StockCharts TV channel all this week for more information.
I am also involved in a big charting summit with wealth365.com all this week. There are over 60 speakers presenting quality ideas without any cost to attend. To register, follow this link. It kicks off with Ralph Acampora, the Godfather of the Technical Analysis, on Monday Morning at 9 AM ET, and I am the kickoff team for Tuesday morning at 9 ET. Mary Ellen McGonagle will also be presenting! Click here to register!
Lots to look forward to and I am currently offering a package for all the good stuff at GregSchnell.com for only $497, which is a massive discount from the regular price of $860 annually. Select the annual plan and get access to the complete list of tools you receive by using the Coupon Code ----> HOLIDAY
If you enroll before Sunday morning, I'll make sure you are on the distribution list for this week's newsletter!
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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