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June 14, 2023
- STMicroelectronics drawing closer to significant resistance at $49.86 with potentially further upside ahead
- The lower Bollinger Band® is currently at $41 while the higher band is at $49.6
STMicroelectronics has posted further gains as part of a 14 day trend that has already seen the stock gain $7.28. Today's session so far looks to be heading in the same direction — after closing the previous trading day at $49.44, STMicroelectronics is up to $49.97, which makes for a move of 1.07%/53 cents today.
The stock has been trending positively for about a month. 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 39.86% year to date.
With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Momentum evaluation shows that first developed in 1978, the relative strength index (RSI) is a momentum oscillator that measures both the speed and rate of change in price movements within a market — measured as a 0-100 index. In STMicroelectronics's case, the RSI has fallen below 30, indicating the asset is oversold. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $49.6, thereby suggesting that STMicroelectronics is becoming overvalued. As the day gets underway, chart analysis suggests STMicroelectronics could be slowing down soon as it approaches resistance at $49.86. Of course, crossing it might suggest further gains are ahead.
Overall, while STMicroelectronics has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Fundamental indicators – Producer Price Index in United States fell short of market expectations (-0.1%) with a reading of -0.3%, continuing the decline from the previous figure of 0.2%.
A look at other technology stocks also shows bullish price action as Oracle is trading at $119.78 after ending yesterday's session at $116.68 (up 2.66%). Microsoft is up 0.66%.
At the same time, Applied Materials is down 1.55% from the beginning of the session and now trades around $139.59.
Upcoming fundamentals: United States Crude Oil Inventories is projected to outperform its last figure with 1.48 million. It previously stood at -451,000; data will be released today at 14:30 UTC.
