No question about it, Action Alerts PLUS Bullpen member Universal Display ( OLED) is one of the more volatile technology names in the stock universe.
Notice on the chart, below, the big wide swings up and down. This can make for a very uncomfortable situation. Still, the long-term prospects for the company are intriguing.
We have written about Universal Display in the past and how their technology is being used with Apple ( AAPL) products and those of other producers. As this note also states, the evolution from smart phones and TVs to automotive lighting is the same path followed.
The stock has been on quite a run this month after the company posted robust earnings. But while a nearly 21% gain since the start of May is impressive, now the stock is at very strong resistance and is coming in. We see the signs of that on the Moving Average Convergence Divergence (MACD), which is starting to roll over, and the Chaikin oscillator at the bottom, which shows accumulation/distribution from a MACD perspective. This indicator is pointing lower. Volume trends are positive.
All is not lost, though, a minor correction could signal an entry point, of which we have been waiting for. Perhaps a move back towards the trendline drawn in the top pane, which appears to be around $138-140 area.
