Kulicke & Soffa is in full breakout mode today. At mid day shares are up over 3% and have moved past the February peak. This impressive move, which lacks volume at this point, has broken through a major overhead trendline that links the November/January highs. With solid footing underneath near the 200 day moving average KLIC is set up well more upside.
Trading notes: KLIC reached extremely overbought readings in late November following a huge 20% post earnings surge. At the February lows the stock had swung to deeply oversold.
Last week KLIC firmed up near its 200 day moving average=solid footing.
The stock is a low risk buy near current levels. A solid support zone is now in place between $23.80(Feb. high)and $23.00. On the downside, a close back below $22.00(March low)would indicate today’s breakout has failed.
Initial upside target is the multi-week 2018/January highs($26.00).
At time of publication we are long KLIC in some managed accounts.
Zacks take on KLIC: www.zacks.com