MPWR, Great Buy?Pricing structure, correction down to at 200 Weekly Ema trendline + Demand zone at $550-570. Suggest this could be one hell of a buying opportunity for this stock.
NQG trade ideas
MPWR LongMonolithic Power Systems ( NASDAQ:MPWR ) is a great stock that has been beaten down for no reason at all, its profit margins are elevated compared to sector peers and it's P/E ratio is lower than it's sector peers, meaning that the stock is undervalued in terms of fundamentals. Technical base, the stock was on a rising wedge and it dumped off of it, it's currently at buy range and its consistent earnings growth should push the stock higher.
PT: 1000 (±5)
Current price: 629.84
+50%The price is experiencing panic selling across the entire U.S. tech sector, with sales significantly lowering the P/E ratio.
Monolithic produces power circuits used in virtually all types of electronic equipment and is a leader in this steadily growing sector.
At the moment, the decline has stopped at the $588 support level, from which a recovery has begun.
I find it highly likely that both gaps will close, the first one within the year, with an increase of 50% or more.
Monolithic Power | MPWR | Long at $580.00Monolithic Power $NASDAQ:MPWR. If the semiconductor market continues to get attention in connection with AI, there may be a bounce here near $580.00 as NASDAQ:MPWR enters my historical simple moving average area. However, a further dip into the high $400s wouldn't surprise me (tax harvesting season is in session) and doesn't change the thesis as long as the overall trend continues to stay positive. While NASDAQ:MPWR is a strong company with growth predictions on the horizon, it has a 65x P/E, 46x price-to-cash flow, lots of insider selling, and some near-term concern if the economy shows weakness. From a technical analysis perspective, though, it's in an area of opportunity as long as semis stay a "hot" investment. Thus, at $580.00, NASDAQ:MPWR is in a personal buy zone.
Target #1 = $690.00
Target #2 = $745.00
Target #3 = $825.00
Target #4 = $908.00
MPWR: High Volatility, High OpportunityI don’t know much about MPWR, but I’ve been watching it closely. They have great business and their margins are solid. From April to August, the stock rocketed up 60%, only to drop spectacularly by 35% in a single month, giving up all its YTD gains.
This is a highly volatile stock, so I’m keeping my position small. But the risk-reward here is undeniable, and I’ve taken an entry at $576.
Monolithic Drop - Time to buy?Monolithic Power Systems (MPWR) has been one of the best-performing stocks over the last decade, with a stellar CAGR driven by its robust growth in analog and power semiconductor solutions. It has consistently outperformed peers due to its focus on highly differentiated, high-margin products and end-market diversity, including automotive, industrial, data center, and consumer electronics.
Technical Analysis:
The chart is quite clear, we have a retracement to the confluence of Golden Ratio Fibonacci and the 200 Week EMA. In the past this has presented an excellent to opportunity to start a position. If we lose the $500 level I would be concerned, but I do expect a bounce between the $530-540 level.
Competitive Strengths:
Market Leadership: MPWR specializes in power management solutions, which are critical for efficient energy use in electronics. Its focus on innovation ensures strong demand even during cyclical downturns.
High Margins: The company’s gross margins are consistently above 55%, driven by proprietary technology and operational efficiency.
End-Market Diversity: Its exposure to secular growth trends like EVs, IoT, and cloud computing offers resilience during chip stock downturns.
Why MPWR May Perform Well Amid a Chip Downturn:
Asset-Light Model: MPWR uses a fabless model, allowing flexibility and lower capital intensity compared to competitors.
Secular Tailwinds: Power-efficient chips are increasingly critical in electrification (e.g., EVs) and renewable energy, markets less prone to cyclical slowdowns.
Pricing Power: Its niche positioning in high-performance analog and power management semiconductors ensures pricing power, even during inventory corrections.
Robust Financials: The company boasts a strong balance sheet, minimal debt, and high free cash flow generation, which provides insulation in downturns.
Risks:
Exposure to cyclical markets like consumer electronics could pressure revenue.
Valuation concerns as MPWR trades at a premium P/E ratio, reflecting its growth prospects.
Not financial advice, do what's best for you.
MPWR Bullish channelMPWR had been in range for quite a while i.e from Nov 2021 to Feb 2024
And then suddenly the fundamentals changed and the company become stronger
A bullish channel has formed and at the moment the stock is at the top of the channel cieling
RSI and current movement suggest it will now corect for some time , take support from 770 and then move back up or its testing the top of the channel and will move further up
Best safe strategy is to buy partial right now and then add on correction
Entry @ 900-915
Stop loss @ 755
TP endless
MPWR breaking daily resistanceReasons for bullish bias:
- Price gave ATH breakout
- Price-breaking strong resistance
- Simple DOW theory
- Entry at HH breakout plus pole breakout
- Bull flag formation
Here are the recommended trading levels:
Entry Level(CMP): 786.71
Stop Loss Level: 700.65
Take Profit Level 1: 872.77
Take Profit Level 2: 958.83
Take Profit Level 3: Open
MPWR - 4 months HEAD & SHOULDERS══════════════════════════════
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
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Hello Traders ✌
After a careful consideration I came to the conclusion that:
- it is crucial to be quick in alerting you with all the opportunities I spot and often I don't post a good pattern because I don't have the opportunity to write down a proper didactical comment;
- since my parameters to identify a Classical Pattern and its scenario are very well defined, many of my comments were and would be redundant;
- the information that I think is important is very simple and can easily be understood just by looking at charts;
For these reasons and hoping to give you a better help, I decided to write comments only when something very specific or interesting shows up, otherwise all the information is shown on the chart.
Thank you all for your support
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
MPWR. Re-distribution. Is point of excitement coming next?Hello guys. Made a quick look at MPWR daily chart. Structure is looking bearish. Why?
1. Lower highs, lower lows
2. Inability of the price to reach bc level (out of 3-4 attemts) in 2022.
3. Gradual increase of volatility from Initial reaction down (Chofbeh reaction) to August decline.
4. November + December rallies are pretty weak (touching only 0.5 of previous decline)
Tactics: even though we have a nice structure that might be local re-accumulation with targets around resistance line of this range we will be looking for shorts with POEntry after break of future local box.
What is your thoughts on this? How do you consider this 1d chart?
