There is a key resistance level that has formed in the 52-week stock chart of ON Semiconductor (ON).

ON Semiconductor is a leading supplier of chips into automotive and industrial markets, with products in analog, discrete, power management, and image sensing. The company is expected to benefit from momentum in image sensors due to the growth in advanced driver-assistance systems for electric vehicles.

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

 Chart of ON provided by TradingView

ON formed a key level of resistance at $22 when it tested that price a second time in July, as you can see above with the red line.  A close above the $22 level should lead to higher prices for ON.

A long trade could be entered when $22 is surpassed, with the expectation of a breakout.

Keep an eye out on August 10, as ON is expected to report earnings before the market opens.

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ON shares fell $0.21 (-0.99%) in premarket trading Tuesday. Year-to-date, ON has declined -13.74%, versus a 2.82% rise in the benchmark S&P 500 index during the same period.

About the Author: christian

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...

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