As its name would imply, TriQuint Semiconductor (NASDAQ: TQNT) is in the chips business. The company maintains a niche in the competitive field by using materials other than silicon to manufacture circuits for use in cell phones, fiber-optic equipment, and other technology. Specifically, TQNT manufacturers its devices with gallium arsenide (GaAs), which can operate faster and more efficiently than its silicon rivals.
After a rough fall from the top along with the rest of the technology sector during the early part of the decade, TQNT has started to show some renewed strength. The equity's relative strength compared to the S&P 500 Index has been impressive of late, with the shares outperforming the broader market since early April.
Late last month, the equity consolidated sideways until it smacked into its ascending 50-day moving average. This trendline subsequently buoyed the shares higher, allowing them to enter territory not visited since early 2004. As the market retreated last week (November 12), TQNT appeared to hit a short-term bottom, in the neighborhood of its 50-day trendline once again. By the close of the week, the stock was in rally mode again, at least for now.
One resistance zone to be mindful of is the stock's 80-month trendline, currently perched directly overhead. TQNT has not managed to trade on the north side of this moving average since December 2001, so there could be quite the battle ahead. On the flip side, a victory over the 80-month could open the door to an impressive surge higher.
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Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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Reader Comments (Page 1 of 1)
11-29-2007 @ 12:29PM
Billie said...
How do I buy this stock? Where do I buy it from?
2-19-2008 @ 1:59PM
sam 117 said...
Feb 20 TQNT earnings /will beat / will have bullish guidance/pristine financials