Vishay Intertechnology (NYSE: VSH)

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Vishay Intertechnology, Inc. designs, manufactures, and supplies discrete semiconductors and passive components in the United States and internationally. The company’s semiconductor products include MOSFETs, such as low-and medium-voltage TrenchFET MOSFETs, high-voltage planar MOSFETs, high voltage Super Junction MOSFETs, power integrated circuits, and integrated function power devices; diodes comprising rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers, and power modules; and optoelectronic components, including infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes, seven-segment displays, and IR data transceiver modules. These semiconductor components are used for various functions, including power control, power conversion, power management, signal switching, signal routing, signal blocking, signal amplification, two-way data transfer, one-way remote control, and circuit isolation. The company’s passive components include resistors and inductors, such as film, wire wound, power metal strip, grid, dynamic braking, neutral grounding, variable, and non-linear resistors, as well as custom load banks, battery management shunts, chip fuses, networks/arrays, magnetics, and connectors. These passive components are used to restrict current flow, suppress voltage increases, store and discharge energy, control alternating current and voltage, filter out unwanted electrical signals, and perform other functions.

Please take a look at the 1-year chart of VSH (Vishay Intertechnology, Inc.) below with my added notations:

1-year chart of VSH (Vishay Intertechnology, Inc.)

After selling off from February until June, VSH has formed what appears to be a double bottom (blue) price pattern. The pattern is as simple as it sounds: Bottoming, rallying up to a point, selling back off to a similar bottom, and then rallying back up again. As with any price pattern, a confirmation of the pattern is needed. VSH would confirm the pattern by breaking up through the $11 resistance (red) that has been created by the double bottom pattern.

The Tale of the Tape: After trending lower into June, VSH has formed a double bottom price pattern. A long trade could be entered on a break above the $11 resistance with a stop placed under that level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT