This Semiconductor leader hails from a very good group, sports decent ranks, and has very good quarterly earnings comparisons. Annual earnings are estimated to fall off for 2014, yet 2015 is showing a potential +91% increase.
RMBS was a most recent addition to the watch list, making its first appearance on this past Sunday. It broke out and triggered our technical buy signal on Tuesday morning as shares traded above our posted TRIGGER PRICE, while the volume that day was clearly on pace to make our posted TRIGGER VOLUME. That action set our BUY PRICE that morning at $10.21.
As noted in this week's Sunday Stock Report: "Has built a nice saucer like base and looks poised to now break out. Any trading above our TRIGGER PRICE while volume is at least on pace to be +50% above average, as that would have it flashing our technical buy signal…"
Breakouts of this nature can be exciting to say the least as they can get volatile. It was an assuring sign though on Wednesday morning to see further accumulation at the open, on the heels of Tuesday's breakout gains of +6.5%.
On Wednesday afternoon, the market negatively revered (Dow -114) yet RMBS held on to a good portion of its morning gains, before closing + 1.33%, with a +75% increase in volume.
From here, our standard technical strength vs weakness rules apply, and our posted support levels should be monitored. As of Wednesday's close and a day and a half of trading we have gains of +4%. No significant weakness thus far, yet as mentioned above - breakouts of this nature can be volatile. The first weakness to watch for would be a gap down, or any above average volume declines, especially on a mid-day reversal.