Arm Holdings plc : New bullish impetus
Entry price | Target | Stop-loss | Potential |
---|
US$995 |
US$0 |
US$956.5 |
-100% |
---|
ARM Holdings, specialized in the R&D of microprocessors for the manufacturing of semiconductors and systems for digital products, resume its uptrend after a failure to break out its short term resistance.
Fundamentally, despite a high valuation which means a high interest from investors for the security, the company has a strong capacity to generate rising profits as shown by increasing revenues and net income. Furthermore, the operating margin at 46.7% for 2013 prove a good pricing strategy and operating efficiency. Finally, the company has an healthy situation with an estimated net treasury at GBp 596 million for 2013.
Technically, the stock is in a bullish trend on all time scales. A return on the short term support gave a new impetus to the trend, given the importance of volume on the stock recently. The 50-day moving average should help to reach the Gbp 1097 short term resistance.
Therefore, investors could buy the ARM Holdings stock at the current price to aim a return towards GBp 1097. A breakout of this level will open new targets. A stop loss will be set under the short term support at Gbp 980.
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