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March 06, 2023
- Price action is gradually approaching a key resistance hurdle at $49.07
- STMicroelectronics made an initial breakout above its 21 day Simple Moving Average at $48.72, a potential indicator of a newly emerging bullish phase.
STMicroelectronics has posted further gains as part of an 8 day trend that has already seen the stock gain 44 cents. On-trend STMicroelectronics closed the session Friday with more of the same: after closing at $47.78 on Thursday, STMicroelectronics rallied as high as $48.85 but ended the day at $48.73.
The stock has been trending positively for about 2 months. This year has been a bright one for the Dutch semiconductor maker after trading as low as $29.56 and going on to appreciate by 38.9% year to date.
With regards to technical trend indicators, chart analysis show that STMicroelectronics N.V. made an initial breakout above its 21 day Simple Moving Average at $48.72, a potential indicator of a newly emerging bullish phase. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at $49.95, thereby suggesting that STMicroelectronics is becoming overvalued. Chart analysis suggests STMicroelectronics could be slowing down soon as it approaches resistance at $49.07. Of course, crossing it might suggest further gains are ahead.
Notwithstanding STMicroelectronics's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
A look at other technology stocks also showed bullish price action as Apple gained 3.51%, as it traded at $151.03. Sony Group Corporation gained 2.88%, as it traded at $85.74. Adobe added 3.16% to its value, and traded at $344.04.
Upcoming fundamentals: United States Fed Chair Powell testimony will be released tomorrow at 15:00 UTC.
