Think Maxim Integrated Products ($MXIM) has what it takes to break out? Here are my thoughts. (October 29, 2019)

by DAN MXIM 
I want to talk about Maxim ( NASDAQ: MXIM ) real quick. The company has reported earnings and the stock has popped a bit higher. The stock has been trading sideways for quite a while. If you look at the weekly chart it almost, almost looks like it’s ready to move higher. I can just draw a few lines like this and then a box like this. Then what we are looking for is another move to start the next leg higher.

Maxim ( NASDAQ: MXIM ) reported earnings that were okay. But I am looking at this box and this has pushed up the top of the box a couple of times before but this started in early in 2018 so this channel here has been in existence for quite some time. So from a trading perspective I am looking at this thinking, I don’t think this stock now has the juice to make a clean breakout above 66.00, which is really what you are going to need.

So what I would suggest doing, frankly, tomorrow is, I would be selling into this. If you held the stock over earnings good for you, take the money and run. I would sell into people that are buying the good earnings and watch the stock. If the stock runs up over 66.00 you can always get back in but you are not really missing much upside; because you are taking your profits, you are getting out of the stock, you’re getting back on the sidelines and then you can make a more well reasoned and risk-less trade.

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