Short This Semi Stock

Posted

Referenced Stocks:NSM

National Semiconductor Corp. (NYSE: NSM ) - This major semiconductor company, which focuses on analog and power management, has rallied from a low of $12 to almost $16 since September.

But the stock's recent break below its major bullish support line and its 50-day moving average, which was accompanied by heavy volume, suggests that Friday's rally is merely a rebound that will shortly run out of steam. Insiders have been sellers in the past three months.

The stochastic is oversold and gave a buy signal recently, but this could provide short-sellers with an opportunity to short the stock at close to $15. The target for a short sale on NSM is $13.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .