One semiconductor showing impressive strength

Updated: Oct 4, 2022

Good evening, Traderade family! Semis have been beaten down, but I have my eye on one that has been resilient recently in the face of unforgiving headwinds for the industry and broader market.

An noteworthy reversal is playing out

Rambus shares have risen above a key area of supply and the 8-day exponential moving average. I believe the company may have room to move higher from here.

Relative strength vs semiconductors is impressive

Rambus stock is outperforming the semiconductor SMH ETF handily, showing relative strength vs its sector that further encourages me.

Trade setup

I would enter on consolidation or weakness above $26.5. My price target would be $31 and I would also exit with a close below the 8-day exponential moving average, which may signal a short-term trend change that isn't favorable.