Synaptics Inc. has been selling off since early July

Oct 20th, 2014 – Comment

What has to be respected at this juncture is the downtrend that has been established and the implications that it has for the direction of the stock.


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SYNA LOGO

 

Hi Lou… hope all is well and good!!

Check out Synaptics. I would appreciate your tech views if you get a chance..

Wishing you the best of Good Buys..
Anthony

 

Hey Anthony,

 

Thanks for the assignment. is number one in touch and fingerprint identification. The company offers a touch pad which can sense the positions of a persons finger on its surface. The applications for mobile and desktop devices include mobile payments, touch based navigation, and touch enabled video and display applications. SYNA reported fiscal year 2014 net revenue of $947.5 million which was up 43% from the previous year. The global market for finger print and touch sensitive technology is expected to grow to $1.7 billion by 2020 from $500 million in 2013. Which by observation makes SYNA a leader in the sector but as with all things business related expanding demand leads to increased competition.

An inspection of the charts will help identify the trend, support, and resistance associated with this stock.

 

SYNA

The three-year chart tells the tale of a great ride to the upside that started in November of 2012 when the stock was trading below $25.00. SYNA ran to a high near $92.50 by early July of 2014 where the advance stalled. The MACD and the RSI both generated sell signals as buyers headed to the sidelines. The retreat has seen the shares breach support along the 50 and the 200-day moving averages and retest support at $67.50 where they caught a bounce. What has to be respected at this juncture is the downtrend that has been established and the implications that it has for the direction of the stock.

 

 

 

 

 

 

SYNA2

The six-month chart isn’t presenting any strong evidence that we can expect a trend reversal in the short term. The momentum indicators are neutral, there is a downtrend in place, and advances have been meeting resistance along the moving averages. All of which don’t support the theory that buyers are ready to take control of the market at the present time.

SYNA is scheduled to  report Q1 2015 results on October 23, 2014. How the results are received will provide additional information that will need to be evaluated to determine how best to proceed.

Make it profitable day and happy capitalism!

 

 

 

 

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