Chip stocks are firming up after a tough summer. Katie Stockton likes the trend in this name
Katie Stockton breaks down the charts on Arm Holdings.
TL;DR
- Semiconductor stocks show improved short-term momentum.
- Arm Holdings (ARM) has broken out above its 50-day MA and daily cloud model (~$275).
- Short-term momentum has shifted positive on the daily MACD.
- The long-term technical outlook for ARM is constructive, with a recent breakout of a long-term trading range.
- ARM was up approximately 17% on Monday, outperforming the S&P 500 and SOX.
- The ratio of ARM to the S&P 500 has broken out above its 50-day MA, suggesting continued outperformance.
- Initial resistance for ARM is seen at the upper boundary of the cloud model, with secondary resistance at a 61.8% Fibonacci retracement level near $364.
- Support for ARM is found at the August lows around $223.