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:
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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