Applied Micro Circuits Corporation provides computing and
connectivity solutions for next-generation data centers and service
providers. The company’s products include the X-Gene ARM 64 bit Server
on a Chip solution, along with the X-Weave family of connectivity
products, for cloud/hyperscale data center and enterprise applications.
Its X-Weave products address various segments, including 10, 40, and 100
Gbps solutions serving data center and service provider market
opportunities. These connectivity products include devices for optical
transport network equipment and physical layer devices that transmit and
receive signals in a high speed serial format. Applied Micro Circuits
Corporation was founded in 1979 and is headquartered in Sunnyvale,
California with sales and engineering offices located throughout the
world.
To review a current H&S pattern on Applied’s stock, please take a
look at the 1-year chart of AMCC (Applied Micro Cirsuits Corporation)
below with my added notations:
AMCC had rallied from a low of $6.50 last April to a peak of $15 back
in October. Over the last 7 months the stock had created a very
important “neckline” of support at $10.50 (blue). Above the neckline you
will notice the H&S pattern itself (green). Confirmation of the
H&S occurred towards the end of January when AMCC broke its $10.50
“neckline”. So, the stock should be moving lower overall from here.
The Tale of the Tape: AMCC confirmed a head &
shoulders pattern. A short trade could be entered on any rallies up to
or near the $10.50 area. A significant break back above $10.50 could
negate the forecast for a move lower.
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