Long MXL for new all-time high
MXL is a small-cap semiconductor name that we've been tracking for a few months. Semiconductors have been one of the strongest performing industries over the past three months, putting up over 20% since the beginning of the year. This trade idea looks to take advantage of underlying strength in the industry.
The 120m chart of MXL shows a strong rally from the stock's swing low around $15 to current levels. We're counting the rally as an impulsive sequence higher, with MXL in the middle of an extended Wave 3 surge. The simultaneous breakout of the prior corrective trend channel as well as the shorter-term impulsive trend channel occurred on strong momentum and is showing good follow through after retesting the topside of the channel.
We're looking for MXL to continue higher in Wave 5 of larger degree Wave 3, ultimately setting up for a push to new all-time highs above $32.25. Initiating a long position at market with a plan to hold for at least 20-25% return.
The 120m chart of MXL shows a strong rally from the stock's swing low around $15 to current levels. We're counting the rally as an impulsive sequence higher, with MXL in the middle of an extended Wave 3 surge. The simultaneous breakout of the prior corrective trend channel as well as the shorter-term impulsive trend channel occurred on strong momentum and is showing good follow through after retesting the topside of the channel.
We're looking for MXL to continue higher in Wave 5 of larger degree Wave 3, ultimately setting up for a push to new all-time highs above $32.25. Initiating a long position at market with a plan to hold for at least 20-25% return.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.