Maxim Stock Moving Well
Gary S. Morrow | May 25, 2021 12:56AM ET
Shares of Maxim Integrated Products (NASDAQ:MXIM) are extending last week’s breakout. The stock closed out last week at new all time highs after taking out heavy resistance near $98.50. Today MXIM is adding another 1.7% at mid day and is set up well for a fresh rally leg.
MXIM has been consolidating in a narrow range sine mid January. This healthy pattern followed a 130% gain off the March 2020 lows. During this phase the stock was able to work off a very high overbought reading without giving up much ground. As a result, MXIM is trading at all time highs while daily MACD sits a neutral. The stock could travel quite a ways before becoming extended.
We regard MXIM as a fairly low risk buy near current levels. On the downside, a close back below $88.00 would violate last week’s low sending a clear warning sign that last week’s breakout move has failed.
Long MXIM in some managed accounts.
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