Stocks to Sell #4: Analog Devices (ADI)
Click to Enlarge Analog Devices (ADI) has been a solid performer in recent years, climbing steadily from its 2011 low. ADI has moved reliably along its trendline in this time period, bouncing off support on multiple occasions.
More recently, however, ADI stock has stalled even as the broader market has powered higher, and it is now within striking distance of both its support line and its 200-day moving average.
ADI stock has been here before and survived, but now it’s testing support with a valuation that’s much higher than it has featured throughout its long march higher. At this level, it won’t take much in the way of broader market weakness to send Analog shares lower. This chart set-up indicates that the time to book profits in ADI is at hand. Earnings are scheduled to be released on Feb. 18.