Mindspeed Technologies (MSPD), a semiconductor and solar technology company, closed up 5.1% to $3.45 on Tuesday.
Tuesday's Range: $3.25-$3.45
52-Week Range: $2.28-$5.27
Three-Month Average Volume: 623,821
From a technical perspective, MSPD bounced higher here right off its 50-day moving average of $3.19 with decent upside volume. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $2.28 to its recent high of $3.57. During that move, shares of MSPD have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MPSD within range of triggering a near-term breakout trade. That trade will hit if MSPD manages to take out some near-term overhead resistance levels at $3.57 to its 200-day at $3.67 with high volume.
Traders should now look for long-biased trades in MSPD as long as it's trending above its 50-day at $3.19 or above more near-term support at $2.92 and then once it sustains a move or close above those breakout levels with volume that hits near or above 623,821 shares. If we get that breakout, then MSPD will set up to re-test or possibly take out its next major overhead resistance levels at $4.50 to $5.
Keep in mind that MSPD is set to report earnings on July 30 after the market close. Look to play this breakout before and/or after the numbers have been released.
I agree with The Street! No major technical resistance once over approx. $3.49 until $4.50 to $5.00 where there are multiple heavy resistance points. A move such as that will hinge on the receipt of a good July 30 earnings report and guidance. It will not happen tomorrow with Intel down over 4% after hours on a large profit decrease. Good luck!
I picked up some Dec $5-stike calls for 35 cents. Stock seems cheap, should trade higher as some of these small cells start deploying later this year. Buyout takes us much higher than $5 if that happens.