Cypress Semiconductor (CY) announced a quarterly cash dividend this week, which has all the fundamental investors excited, but there’s a treat for the technical traders too: CY’s chart shows it’s setting up for a short-term move.
At the Aug. 20 close, Profit Scanner powered by Recognia discovered that a bullish Ascending Continuation Triangle pattern appeared on CY’s chart indicating that a 13% to 15% higher move is possible in the next 36 trading days, or by early October.
CY’s close at the technical event was $10.90 and the pattern’s target range is $12.00 to $12.30. The Ascending Continuation Triangle occurred on volume of 2,262,836 shares traded.
Lending credence to this short-term run, Profit Scanner shows that several bullish events have appeared on CY’s chart in recent weeks including the following:
Traders should be aware that resistance for CY resides at $10.93, so a close above that level should provide an all-clear. Conversely, support for the stock is at $10.22, which CY has held nicely for several sessions.
Still, it’s important to set stop-losses in the event of a reversal, and Profit Scanner has identified a close below $10.27 as a medium stop appropriate for the average trader.
CY is expected to report quarterly earnings in mid-October, so if this pattern is successful it should play out before then.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.