Nice looking bullish semiconductor stock trading idea. CODE – Spansion is trading at an all time high. The stock is not extended though as the long-term W-bottom and the ascending triangle offer a lot of pattern pressure indicating the real upmove is yet to come. Judging from the pattern a price target in the 30$ looks feasible. the stock is under strong accumulation and is making it very hard to enter. The harder it is to enter the higher the odds it is due to buyers being eager to position themselves as fast as they can. The trend is clearly up and so far nothing looks like this is going to change anytime soon. I bought an initial position. Quick reminder: If price doesn’t confirm my assumption and my analysis I change my mind. No hard feelings.
Click on CODE – Spansion chart to enlarge:
CODE – Spansion company description from the company’s website:
Spansion is a global leader in Flash memory-based embedded systems solutions. Spansion’s Flash memory, microcontrollers, mixed-signal and analog products drive the development of faster, more intelligent and energy efficient electronics. Spansion is at the heart of electronics systems, connecting, controlling, storing and powering everything from automotive electronics and industrial systems to the highly interactive and immersive consumer devices that are enriching people’s daily lives. The global digital industry is rapidly transitioning from traditional computing architectures toward a world where people, objects and machines are in a perpetual mode of communication and interactivity. Data and applications are accelerating at breakneck speed, requiring electronics to work more quickly and be more intuitively responsive. Advances in memory and processor technology will fuel this ongoing evolution of the digital infrastructure that is now fundamental to how people work, live and play. Spansion is at the forefront of this fast-paced interconnected world, delivering a broad portfolio of Flash memory, microcontrollers, analog products, and mixed-signal, as well as integrated system-on-chip solutions. Our leading-edge intellectual property and products are driving the development of high quality, reliable and economical devices that are faster, intelligent, efficient and secure.
What is most likely driving the stock price though is the first paragraph of their press release from June 5th:
SUNNYVALE, Calif., June 5, 2014 /PRNewswire/ — Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today announced a new family of power management integrated circuits (PMICs) for energy harvesting that can enable a “Greener Internet of Things (IoT)“ by eliminating the need for or extending the life of batteries in a multitude of IoT devices from individual wearable electronics to the nodes in wireless sensor networks. – I highlighted the important and catchy phrase.
Love small losses. Hate large losses.
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