NXP Semiconductors (NXPI) moved in a broad, mostly sideways trading range the past 12 months, but prices took a turn lower this month and TheStreet.com's quantitative service downgraded NXPI today. Let's check the charts for some guidance. 

Source: BigCharts.com

In this daily chart of NXPI, above, we can see the broad trading range for NXPI the past 12 months. In the month of June prices turned lower. NXPI, which is part of the Action Alerts PLUS portfolio co-managed by Jim Cramer and Jack Mohr, is below its declining 50- and 200-day moving average lines. These moving averages help define the trend.

The On-Balance-Volume (OBV) line turns down in June; that tells us that sellers of NXPI had become more aggressive, with the volume of shares trading being higher on days when NXPI has closed lower. There are no bullish divergences between the lower prices and the momentum study. Prices could bounce, but the momentum indicator is not foreshadowing it.

In this weekly chart of NXPI, above, we can see that prices are below the 40-week moving average line. The slope of the average line is neutral but could turn negative soon. The OBV line is weakening on this time frame, but of more concern is the Moving Average Convergence Divergence (MACD) oscillator. It moved above the zero line but is now almost back below it, generating a new sell signal as the two lines of the oscillator are poised to cross.

It looks like NXPI is headed back down for a retest of the $60 area. Stay defensive.

About OMO Electronic Limited

Your Trusted Partner for Distributing OMO Electronic Limited!
Our Mission is to provide the best quality IC components with the best affordable price every time.

We are looking forward to cooperating with you!

www.omoelec.com/