klic

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