Breakout in the Charts for Analog Devices?

NASDAQ: ADI | Analog Devices, Inc. News, Ratings, and Charts

ADI – An ascending triangle pattern has emerged in the chart of Analog Devices (ADI). This is considered a bullish pattern. If the resistance level is broken, a breakout could soon occur. Read more to learn how to profit from this trade.

An ascending triangle pattern has formed in the chart of Analog Devices, Inc. (ADI). This is a bullish pattern and if the resistance level is broken, a breakout could occur.

ADI is a leading analog, mixed signal, and digital signal processing chipmaker. The company has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa.

The company is benefiting from strength in the electric vehicle space driven by its Battery Management System (BMS) solutions. Plus, the rising adoption of advanced radio systems in 5G is driving growth in the firm’s communication segment. Management is optimistic about growth opportunities in 5G.

ADI has a current ratio of 1.6, which means it has more than enough liquidity to handle short-term obligations. The company is also quite profitable with a net profit margin of 24%. In its most recent reported quarter, earnings were up 39.8% year over year, while revenue rose 20%.

Its stock is a bit overvalued with a trailing P/E of 41.99 and a forward P/E of 25.51. The stock has been trending up since September, but has shown mixed momentum for the year.

Take a look at the 1-year chart of ADI below with the added notations:

  Chart of ADI provided by TradingView

While climbing a clear trendline of support (green), ADI has also formed an important level of resistance at $164 (red), creating an ascending triangle pattern. The stock just hit the resistance a few weeks ago but could now be making another run at that level.

A long trade could be entered on a break above $164 with a protective stop placed under the point of entry.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


ADI shares were trading at $156.27 per share on Friday morning, up $0.90 (+0.58%). Year-to-date, ADI has gained 6.23%, versus a 10.80% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ADIGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Top 10 Value Stocks

The S&P 500 (SPY) has shown mixed results in the last week, but if you are a value investor, then yesterday was a big day. That’s when we revealed to our readers the fatal flaws of traditional value investing and the solution to this problem—our Top 10 Value Stocks strategy. Read on below to find out more about this 3-step process and its +38.63% annual returns…

:  |  News, Ratings, and Charts

4 Top-Rated Tech Stocks to Enhance Your Portfolio

The investor rotation away from technology stocks is expected to be short-lived owing to the unabated demand for advanced technology products and services. Therefore, we think some of the biggest names in the tech industry, specifically Intel (INTC), International Business Machines Corporation (IBM), Panasonic (PCRFY), and Canon (CAJ) are solid bets at their current price levels. Read on for an explanation.

:  |  News, Ratings, and Charts

2 Casino Stocks Wall Street Loves

The easing of pandemic distancing restrictions facilitated by mass vaccinations is allowing casinos and related entertainment companies to reopen at 40-50% capacity. This, coupled with the rising popularity of online gambling, is fostering optimism among Wall Street analysts about the upside potential of Penn National Gaming (PENN) and Melco Resorts & Entertainment (MLCO). Read on.

:  |  News, Ratings, and Charts

4 Buy-Rated Financial Stocks to Snatch Up in May

Financial sector stocks have been making an impressive comeback in lockstep with the economy’s recovery. So, we think investing in the stocks of fundamentally sound Goldman Sachs (GS), Lazard (LAZ), Piper Sandler (PIPR), and Cowen (COWN) could pay off handsomely in the near term.

:  |  News, Ratings, and Charts

2 Casino Stocks Wall Street Loves

The easing of pandemic distancing restrictions facilitated by mass vaccinations is allowing casinos and related entertainment companies to reopen at 40-50% capacity. This, coupled with the rising popularity of online gambling, is fostering optimism among Wall Street analysts about the upside potential of Penn National Gaming (PENN) and Melco Resorts & Entertainment (MLCO). Read on.

Read More Stories

More Analog Devices, Inc. (ADI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ADI News