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: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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