Don't Ignore This Chart!

Atmel (ATML) Shows Relative Strength, Nears Support

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

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 of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More