Don't Ignore This Chart!

Atmel (ATML) Shows Relative Strength, Nears Support

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Just a couple months ago in early May, ATML gapped higher on big volume and hasn't looked back since.  Along the way, it cleared price resistance just below 9.00 on very heavy volume and subsequently surged to 10.50 before becoming violently overbought and in need of relief.  Like most semiconductors, ATML has struggled over the past month.  But while many of its peers are struggling to hold onto intermediate-term price support, ATML has simply fallen back to its recent breakout level.  Given its superior relative strength within its group, strong volume trends and an RSI now near 40, ATML seems like one semiconductor poised to rally - especially if the industry group can continue its bounce from the last week.  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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