Semtech Corporation (NASDAQ: SMTC)

Semtech Corporation and its subsidiaries design, develop, manufacture, and market analog and mixed signal semiconductor products. Its products lines include signal integrity and timing products, such as a portfolio of optical communications, broadcast video, active cable transceiver, and backplane products used in various enterprise computing, industrial, communications, and high-end consumer applications; and proprietary advanced wired communication and ultra-high speed serializer/deserializer products for optical transport communication used in various communications and industrial applications.
Take a look at the 1-year chart of Semtech (Nasdaq: SMTC) below with added notations:

SMTC has been trading in a large, sideways range for the last 10 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. SMTC’s rectangle pattern has formed a $28 resistance (blue) and a $22 support (green). At some point the stock will have to break one way or the other.

The Tale of the Tape: SMTC is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $22, or on a breakout above $28. Short opportunities would be on a rally up to $28, or on a break below $22.
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