April 9, 2013 (by Frank Kollar)
Shares of Atmel Corp (NASD: ATML) appear headed for another downturn.
Atmel Corp. designs, develops and supplies microcontrollers, which are self-contained computers-on-a-chip. Its microcontrollers and related products are used in smartphones, tablet devices and other consumer and industrial electronics to provide touch sensing, security, wireless and communications applications, and battery management services.
Over the past week Atmel Corp posted a fourth-quarter loss as the chip maker was hurt by losses related to a foundry arrangement, restructuring-related charges and other items, as well a decline in revenue.
Now the daily chart is nearing a break of support that could send prices lower still.
Chart Courtesy of StockCharts.com
Atmel could easily reach $5.55 in coming days. And, a break below this level could result in a test of the prior lows down at $4.50 a share.
Because of the volatility of this stock, this trade has a higher risk than normal. Consider a short trade with a buy stop at $7.05.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does not have a position in Atmel Corp.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.