My bullish scan of stocks has been dominated by technology names for more than a month and with Wednesday's market pullback, that list has dwindled to just 7 names. Six of which are in the technology space and Cypress Semiconductor (NASDAQ:CY) looks particularly interesting.
The chart below shows how Cypress Semiconductor fell from a high in March of 2015 to a low this past February. Since then, it's had an uphill run, crossing its 50-day SMA in March followed by its 200-day SMA in May. At the start of June, CY made a peak near a 50% retracement of the move lower. And that happened just as the chart printed a Golden Cross (the 50-day SMA crossing up through the 200-day SMA). The pullback found support at the 200-day SMA, then reversed higher.
It made another new high as it continued the reversal off of the bottom. July 29 saw a shooting star candle mark a top and a reversal back to the rising 50-day SMA -- then after some consolidation, a push back to that top. Through Wednesday, it has continued to push higher. The Measured Move out of the recent consolidation suggests a target to 13.50. Momentum supports continued upside with the RSI in the bull zone and rising while the MACD is crossing up. As it pushes higher, there have been aggressive call buyers at the September 13 strike as well.
It may be time to take a closer look at this semiconductor play.