Maxim Integrated Products, Inc. (MXIM) engages in the design, development, manufacture, and marketing of linear and mixed-signal integrated circuits. Its products include integrated power circuits, amplifiers, data converters, analog filters, transceivers, expanders, level translators, broadband switches, powerline communications, microcontrollers, data loggers, solar energy, and automotive…
Take a look at the 1-year chart of Maxim (NASDAQ: MXIM) below with added notations:
MXIM rallied persistently into 2021 but has found itself repeatedly stalling at the $98 level (red). That barrier is also preventing the stock from hitting new 52-week highs. A solid close above that $98 mark should lead to much higher prices for the stock.
The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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