Current
After yesterday’s market close, the shares of the well-known American semiconductor manufacturer fell by 3.45%.
Today, the share moved up again before the stock market opened at +7.00%.
The price confirmed the ongoing downward trend most recently with a low at around $24.59 and has since risen by almost 13% at times.
The reason for the increase was that earnings were slightly above analysts’ expectations and sales were in line with expectations.
For example, earnings per share for the third quarter of 2022 were estimated at $0.35/share, but were surprisingly $0.59/share.
This corresponds to a drop of a full 65% compared with the prior-year quarter, which is also reflected in the share price decline of around 56%.
The upcoming quarterly dividend payment has probably also contributed to the current share price recovery.
Analysis
In the current downtrend since April 2021, the price has marked a short-term high at around $27.59 and a low at around $24.59.
Thus, the price has secured a relevant support in the area around $27.70. The next resistance can be seen in the $29.50 area.
Should the price stay above the support after the market opens and respect it,
this can be interpreted as a bullish signal and further rises towards $29.00 could follow.
Otherwise, the price could fall back to the previous support at $24.70.
If this is breached, we could see a further descent towards $23.60.
