Watch LSCC Above 20 (December 26, 2019)

by DAN LSCC 
This is Scott with your Free Chart of the Day. I want to take a look at Lattice Semiconductor ( NASDAQ: LSCC ). Lattice Semiconductor ( NASDAQ: LSCC ) has basically been going sideways since August. You can see this nice l-o-n-g base of consolidation and nice big volume pops. When the stock goes up it goes up on high volume. When it pulls back, generally it pulls back on low volume.

As you can see here the last couple of sessions the stock has been finding support right around the 50-day moving average. If I move this bar down you can see the red line there, that is the 50-day moving average and it is kind of getting into a nice tight consolidation pattern; where again, the stock goes up on high volume, pulls back on low volume. So the buyers are stepping in to support the stock at these levels.

I think what you want to watch for is a break above, let’s say, $20.10 here on LSCC ( NASDAQ: LSCC ) to start a small position. Starting that small position you are able to put a stop just below this low from Christmas Eve here and you are not risking more than 5 percent on that small position. And then I think you want to add to that position if we get a break of this bar here. If we take out that bar on volume, that’s around $20.60 so you could probably set an alert at 20.55 just to take a look at it and see if the volume is confirming a move to the upside. You are really going to want that volume confirmation strictly because the stock has been going sideways for so long and every time it kind of comes up to these levels a seller takes over.

So again, I think you could start a small position with a break of $20.10 and add with a break of 20.60. Again, keeping a stop just below the 50-day moving average. This is one stock that we are watching at Stock Market Mentor and I hope it works out for you.

Free Chart