Rambus (RMBS) — This technology solutions company provides memory, chip interfaces and architectures, end-to-end security and advanced LED lighting. On Feb. 21, Zacks reported Rambus could be “an interesting play for investors.” It noted that the stock had strong forward momentum and is seeing “solid activity on the earnings estimate revision front as well.”
On Feb. 28, with the stock at $9.36, I recommended it solely on the basis of technical analysis using our new Profit Scanner service: “Note the symmetrical continuation triangle, a formation that usually occurs prior to a major breakout and continues a long-term move higher following months of consolidation… Buy RMBS at the market with a target of $11.30 to $11.70.”
Rambus hit my target, so if you have not yet taken profits, I suggest you do so now. A break of the near-term support line at Monday’s low of $10.93 could result in a decline to first support at $10.30, and then to its 50-day moving average at $9.74.