Xilinx Inc (NASDAQ:XLNX) is setting up well for a fresh rally leg. The stock’s steep pullback off the January highs reached major support in early March. Shares have been steadily rebounding since. We consider the stock a fairly low-risk buy near current levels.
At last month’s low XLNX had retraced roughly 50% of its powerful rally off the March 2020 lows. This steep pullback drove the stock into a deeply oversold reading.
The 50-day moving average has held this week’s low, which is solid footing.
A key near-term hurdle for the stock is last week’s high ($131.65). Once cleared, XLNX will have pierced a key overhead trendline.
On the downside, a close back below $122.00 would violate the April lows, indicating more basing is ahead.
Of note: Advanced Micro Devices Inc (NASDAQ:AMD) is set to announce earnings next week (4/27). XLNX is set to announce earnings (5/4).
Note: We have no position.
You can read Gary S. Morrow's original post here.