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June 03, 2023
- STMicroelectronics is eyeing the $44.49 support level
- Price action breaks below known Fib level ($45.14)
Stable at $44.91 and still trending upwards, Yesterday's session put the brakes on the ongoing uptrend — a quiet day for STMicroelectronics as it remained range-bound within a $44.56 – $45.46 range before closing at $44.91.
The stock has been trending positively for about 29 days. Approximately 2 months ago, the Dutch semiconductor maker reached a significant high of $53.49 but has struggled to hold onto its gains and declined 15.97% since then.
Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Price action pushed below a known Fibonacci support level at $45.14 by around 23 cents with prices hammering out a $44.56 – $45.46 range by session close. According to asset volatility analysis, STMicroelectronics's upper Bollinger Band® is at $45.77, suggesting that a downward move may follow. Technical analysis of STMicroelectronics's past price action reveals multiple support and resistance levels: STMicroelectronics is approaching key support, around 42 cents away from $44.49. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
Overall, while STMicroelectronics has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Fundamental indicators – United States Non Farm Payrolls improved upon its previous reading of 294,000 with a new data release of 339,000.
Meanwhile, mixed performances were seen by other technology stocks as IBM was up 2%. Accenture plc Class A (Ireland) traded at $311.39 after closing yesterday's trading day at $305.2 (up 2.03%). Adobe was up 2.25%.
