In my last post, I compared the effect earnings had on the price action of two stocks, namely Nvidia (NVDA) and AMD. Plus, both are featured in the top 10 stocks for inflows by retail traders and investors. You can catch my analysis here, and I will be updating both stocks later. 

As a result of this post, I was asked if I could give an example of a gap-up in earnings with follow-through, which I would like to do here. I’m staying with the semiconductor industry not only because I want to compare ‘apples with apples’ but also because the industry looks to be recovering from the 2022 tech rout.

The stock I’ve selected is Allegro Microsystems Inc (ALGM), and the daily chart for the stock, is annotated below.

In my opinion, the excellent earnings report for ALGM simply provided some additional impetus for the stock to move to its new ATH, and it’s no surprise to see the price action pull back slightly, pause and move into consolidation. What is encouraging the stock is building a platform at $42, and if it continues to do so, we should see the volume point of control move to this level to provide further support. 

An interesting stock both from a technical and fundamental perspective and perhaps one to watch for the future, not least because the stock is expected to outperform its peers over the next three years. We shall see.

(Click on image to enlarge)

More By This Author:

Volume And Price Analysis For Nvidia And AMD
Price And Volume Analysis For SPY
Volume Price Analysis For Tesla