Freescale Semiconductor Ltd (NYSE: FSL)

Freescale Semiconductor, Ltd. provides embedded processing solutions for automotive, networking, industrial, and consumer markets worldwide. The company’s embedded processor products comprise microcontrollers, such as ultra low power, low end 8-bit products to higher performance 16-bit, and 32-bit products with on-board flash memory, which provide the digital logic or intelligence for electronic applications; single-and multi-core microprocessors; and applications processors with embedded memory, and special purpose hardware and software for multimedia applications. It also offers wireless connectivity products for low power wireless communications functionality; communications processors that perform tasks related to control and management of digital data, and network interfaces; and radio frequency devices, such as power transistors, amplifiers, receivers, and tuners. In addition, the company provides analog and mixed-signal products, such as power management devices, system-based chips, battery and motor control devices, CAN/LIN network transceivers, and radar and signal conditioners; sensors comprising pressure, inertial, magnetic, proximity, and gyroscopic sensors, which act as an interface between an embedded system and external environment; and cellular products.

To review Madden’s stock, please take a look at the 1-year chart of FSL (Freescale Semiconductor, Ltd.) below with my added notations:

1-year chart of FSL (Freescale Semiconductor, Ltd.)

After hitting $16 as resistance (maroon) twice back in February and March, FSL fell all the way down to $12. Since that time though, the stock has worked its way back up and broken through its $16 resistance, which was also a new 52-week high. A pull back to that $16 level could provide a nice long entry on the stock.

The Tale of the Tape: FSL broke out to a new 52-week high and now seems to be pulling back. A long trade could be made at $16 with a stop placed below that level. A break below $16 would negate the forecast for a continued move higher.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

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