Keep an eye on this Semiconductor laggard. $LSCC – May 23, 2023


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This is Scott with your Chart of the Day. As you may or may not know semiconductors have been holding up really well in this market. They were one of the first sectors to really break out and drag stocks higher.

At Stock Market Mentor we have been paying attention to a bunch of semiconductor stocks. And one that didn’t really make a move, but I have been watching, is Lattice Semiconductor ( NASDAQ: LSCC ).

Now Lattice ( NASDAQ: LSCC ), as you can see, broke under the 50-day moving average back in April. It tested the 100-day EMA, that’s the black line here, and kind of found the support area. So it is using these moving averages as both resistance here and support here.

When stocks are close to, and holding in and around moving averages, I like to pay attention to those because those are the ones that the market is trying to firm up while we are in a bit of a pullback like we are in the SPY ( NYSEARCA: SPY ), and the QQQs ( NASDAQ: QQQ ), and of course, as I mentioned, Semiconductors ( NASDAQ: SMH ).

And so with Lattice ( NASDAQ: LSCC ) holding the year, a pretty clear level is something that I want to pay attention to. Now, dialing things here, for most of the month of May, Lattice ( NASDAQ: LSCC ) has printed a bunch of different higher lows. We have the low from back here in April. A higher low in mid-May. And again, another higher low right around this level.

So we are getting higher lows, and it’s finding support. My thought is, that if Lattice ( NASDAQ: LSCC ) can firm up here, and set up for a potential move higher, it could go further than the others because it got less extended the last time.

And so I want to pay attention to this semiconducting laggard right now, LSCC ( NASDAQ: LSCC ). I am going to set a breakout alert on my software right around that 85.75 level and see if it does, in fact, break to the upside.

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