Chart of the Day: STMicroelectronics N.V. (STM)

STMicroelectronics N.V. (STM) designs, develops, manufactures and markets products, which offers discrete and standard commodity components, application-specific integrated circuits, full custom devices and semi-custom devices for analog, digital and mixed-signal applications…

Take a look at the 1-year chart of STM) below with added notations:

STM had hit resistance at the $32 level (green) on two separate occasions over the past year. Now that the stock has broken above that resistance, while also hitting a new 52-week high, overall higher prices should follow, and $32 should become a support on any pullbacks.

The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A failure to hold $32 could negate the expectations for a higher move.

Have a good trading day!

Christian Tharp, CMT