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Maxim Integrated Products, Inc. (MXIM)

MXIM stock forecast: buy or sell

Close on Oct 23rd, 2020
$72.87 -0.92%
3 months performance
7.00%
Published: October 23rd, 2020 - 5.26pm EDT

MXIM stock outlook

  • Maxim Integrated Products closed today at $72.87 after barely changing a -0.92% and broke a streak of 3 sessions in negative.
  • Maxim Integrated Products is presenting its earnings report on Tuesday next week
  • On Wednesday, it broke out above $73.02, a resistance not crossed since mid-July.
  • On October 15, it broke out above $73.02, a resistance not crossed since mid-July.

Important:
The opinions expressed in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not know the particular positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for learning reasons only

MXIM stock charts

Should I buy Maxim Integrated Products stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $MXIM stock a buy?

Currently, Maxim Integrated Products stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that price doesn't have upper resistances, and usually it rises quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 2.74% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $74.87. The stop loss would be ordered at $67.38

Buy setupBuy pointStop lossRisk
ATH buy setup$74.87$67.3810%

Should I sell Maxim Integrated Products stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Like when we have to buy shares, deciding when is appropiate time to sell is not a capricious decision, and we must adhere our own trading strategy. When selling, as well as buying, our setups are very easy to follow and are only applicable for selling stocks in your porfolio, not for shorting $MXIM stock

A guiding principle is that you should not keep a trading operation that generates losses greater than those expected by the time of purchase. The timing to sell your stock should always be ruled by the stop-loss (automatic or manual)

Is it time to sell Maxim Integrated Products stock?

In the current situation of Maxim Integrated Products there is not any eligible sell setup, so Maxim Integrated Products stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Maxim Integrated Products stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous month we couldn't find any rating for Maxim Integrated Products

Technical analysis

Downtrend breakout

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show trend direction. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

MXIM SMAs chart

Supports and resistances

Investors use supports and resistances as a way to spot price points on a chart that tend to work as glass ceiling, containing the price of a stock to move in certain direction. A support level is a level where the price tends to stop as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it is likely to continue descending until finding another support level. In contrast, resistance levels are where the price tends to find resistance as it rises. Likewise, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will rise easily until it hits the next resistance

The current resistance levels are:

  • R1: $73.02 (0.21% above)
  • The current supports are:

  • S1: $71.37 (-2.06% below)
  • S2: $68.63 (-5.82% below)
  • S3: $66.14 (-9.24% below)
  • Bollinger bands

    So-called Bollinger bands are a well-known studio designed by John Bollinger. In essence, the Bollinger Bands are lines that move around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on October 13, the price sliced by 2.67%

    MXIM RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price fluctuations to spot when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The Relative Strength Indicator (RSI) has been between the the levels of 30 and 70 for many weeks, and therefore, without this indicator really being helpful in making any decisions.

    MXIM RSI chart

    Earnings and financials

    MXIM ($MXIM) is releasing quarterly earnings report on Tuesday next week. Forecasted earnings a share for this quarter is $0.58, compared to $0.58 that was reported for Q4.

    Stocks releasing earnings often experience a much higher volatility in its price action while market is closed and the session after. This volatility means that your stop-loss orders may become ineffective or may trigger far from your aimed price. Maxim Integrated Products's website probably has additional information.

    FQ4 investors call was hosted by Maxim Integrated Products ($MXIM) in late July after releasing the financial report. MXIM presented fiscal fourth-quarter earnings of $0.58 per share compared to market estimate that was $0.57.

    This compares to earnings of $0.56 per share a year ago, so current EPS is an improvement of 3.57%.
    MXIM revenues and profits chart