Monday, September 13, 2010

Trade idea: ADI:ANALOG DEVICES, INC



I would be looking to go Long ADI:NYSE based on a good open on decent volume and looking to hold for from 2/3 days up to 2 weeks.All of the recent up moves have been quite clean and down movements a little slower , which would indicate some pressure from the bulls
ADI has been going sideways in a trading range for the last few months with a Neutral 50/100 EMA.
My Target would be the recent high of 29.75. There are two obvious places to put the stop , either at a tight 27.75( recent support at this level) or longer term support at 27.25. I think due to the fact that the .75 support was broken I would favor the 29.25c support.

The risk reward for the trade is decent at 4-1.

Keep and eye on NYSE:XSD at the open.

Chris



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