Qorvo, Inc. provides technologies and radio frequency (RF) solutions for mobile, infrastructure, defense, and aerospace applications in the United States and internationally. The company operates through Mobile Products, and Infrastructure and Defense Products segments. The Mobile Products segment offers complete RF front end modules that combine high-performance filters, power amplifiers (PAs) and switches, PA modules, transmit modules, antenna control solutions, antenna switch modules, diversity receive modules, and envelope tracking power management devices. The Infrastructure and Defense Products segment provides high power gallium arsenide and gallium nitride PAs, amplifiers, switches, fixed frequency and voltage-controlled oscillators, filters, attenuators, modulators, driver and transimpedance amplifiers, and various multichip and hybrid assemblies.
Take a look at the 1-year chart of Qorvo (NASDAQ: QRVO) below with my added notations:
QRVO rallied higher up into its June peak, but after that the stock declined for the next 3 months. More recently, over the past 4 months the stock has created an important level of resistance to watch at $60 (red). QRVO has tested that level several times dating back to mid-August. A break above that $60 level should lead to higher prices for the stock.
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The Tale of the Tape: QRVO has a key level of resistance at $60. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $60.
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!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach