Tuesday, August 12, 2014

Analog Devices, Inc. (NASDAQ: ADI)

Analog Devices, Inc. is engaged in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits (ICs) for use in industrial, automotive, consumer, and communication markets worldwide. It offers signal-processing products that convert, condition, and process real-world phenomena, such as temperature, pressure, sound, light, speed, and motion into electrical signals. The company’s products include data converters, which translate real-world analog signals into digital data and translate digital data into analog signals; high-performance amplifiers to condition analog signals; and radio frequency ICs to support cellular infrastructure.
Take a look at the 1-year chart of Analog (Nasdaq: ADI) with the added notations:
1-year chart of Analog (Nasdaq: ADI)
ADI has been chopping its way higher for most of the year. However, the last 2 months for the stock have been rough ones. You will notice that the stock has even fallen back under the $50 level, and that level has always been key for ADI whenever the stock has been above or under it.

The Tale of the Tape: ADI has a key level of resistance at $50. A short trade could be made on any rallies up to that $50 area with a stop placed above that level. A break back above $50 would negate the forecast for a lower move.
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