Here’s your trade on one of those semi stocks! Check out $ADI – April 10, 2023
This is Dan Fitzpatrick and I want to look at Analog Devices ( NASDAQ: ADI ). This is a stock that Jim Cramer covered, I think it was last week, on his “Off The Charts” deal on Tuesday. He had asked me for a stock that I really liked and this is the one.
Now, the reason I am pointing this out now is, I think this is at a really good entry point right here. I really like the way the stock broke out. Wouldn’t it have been nice if it had just kept going, unfortunately, stocks don’t trade that way. But this is coming out of a big multi-year base, so to speak, with 190.00 as resistance.
And so my thesis is, if the stock breaks out above 190.00 the breakout will ultimately be real and we will start to get another leg up, and that is exactly what we saw here. So now, with a 3-day pullback (I don’t really count this as a pullback day), with a 3-day pullback on Tuesday, Wednesday, Thursday, and then today it gapped down, and a test of the 50, and then a really, really strong close; I look at this as more confirmation that this breakout is going to work.
So my suggestion for a trade would be to be buying the stock, basically, right now. And then you would put a stop right under there, right under the 50-day moving average. That is a really tight stop, a very, very low-risk on an uptrending stock that has given you, essentially, a second bite at the apple. That would be my trade here.
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