Cypress Semiconductor Corporation (CY) has been having a set of eventful trading activity and it is clear from an examination of the charts that traders are now fully aware of the company’s key metrics. A deeper exploration of the setup is sure to yield a clearer picture of why CY is trending in the way it is presently – let’s move right into that. As we move into the full deep dive of the technical chart, it’s quite important to point out that few traders succeed if they ignore the messages presented under technical analysis.
CY’s present state of movement can best be assessed by looking at its current day’s high $13.795 and the corresponding low of $13.1799. It is important to note that the current day’s high figures poorly when compared to the trailing 52-week high of $14.98 achieved by CY on 03/28/17. The corresponding low also paints a picture and suggests that the low is nothing but a 49.62% since 06/28/16. From a trading perspective, this is a good sign for anyone keen on making big gains from the stock’s prevailing upside potential. Of course the current trading setup is getting a lot of attention from analysts. Most have laid bare their sentiments on the stock as you can see from the following: The target price for CY is $16.00; this target is below the most recent high recorded for the stock. There’s also the current beta of 1.98. As you might already know, beta is an excellent source of trading sentiment and given that the existing beta for CY is greater than 1, traders and investors will no doubt read that CY is theoretically more volatile than current market dynamic. These data points are key areas savvy traders will be monitoring.
Savvy traders won’t stop at the data points outlined above, however; many will seek to bolster their understanding by tapping the use of other technical indicators. Technical indicators don’t get more indicative than the measures called Relative strength indicator (RSI) and Stochastic. The numbers for CY, based on these two very powerful indicators, are indeed very telling. Let’s see what they say in greater detail. The current reading for CY, where the 14-day RSI is concerned, is 48.12%. This means, based on the reading, that CY is neutral, suggesting that the stock is relatively stable in terms of upward or upward price movement. The stochastic reading is also gives consistent interpretations. In relation to CY, there is a stochastic reading of 65.70%. This means, based on the stochastic data, that CY is neither overbought nor oversold at prevailing levels.
CY composite picture doesn’t end with either the RSI or the Stochastic, however; there are also compelling readings being presented by the stock’s 50 and 200 SMAs. CY, on account of current trends displayed on its moving averages, appear in all ways and from all angle of analysis, to be bullish. Traders and investors have naturally seized upon this current positioning of the stock and general sentiment appears to be positive.
You might be thinking that the technical picture outlined above is all this stock has to offer. But there’s more – the icing on the cake, if you will. CY’s +0.18 has now manifested a clearer vein of trading and investing sentiment. When analyzed closely, this sentiment appears to be largely positive assessed over the trailing 30 days of data. CY isn’t standing still by any means and the stock has outperformed the S&P 500 by 11.5. The consequences of this performance have been stark; the stock is now trading on higher volatility levels when compared to matched against companies operating in the same sector. Historical volatility is also showing why CY is on the radar of a lot of traders. This reading for historical volatility is 44.31%. CY is also pointing to strong readings on the Average True Range – a very important technical touch point that shouldn’t be ignored. That ATR reading is 3.28. CY, when analyzed from the vantage points of maximum clarity, has made it obvious which direction the wind is blowing. No savvy trader can say they’ve missed the stock’s positioning premise.