Chart of the Day: Time's Right for SiTime
The stock has been a consistent mover to the upside for months, solidifying its position as a 'Diplomat.'
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The stocks in the "EPS Diplomats" are strong earnings growers that consistently beat analyst estimates or at the least are in line with them. SiTime (SITM) is one of the newer names in our portfolio, and shows the same characteristics in the chart as many others we have shown in this basket, with higher-highs and higher-lows. This of course is our textbook definition of an uptrend.
But another strong quality of these names, SITM included is we have seen buyers step in on the dips, providing plenty of buying power at levels we would think might hold firm. As we see in the chart below, that happened a few times when SITM dipped to the 100 day moving average. A fiery rally ensued in November, now the stock is simply moving sideways in a wide range.
Indicators are modestly bearish only because the pace of movement has slowed down considerably. Candles at the top of the chart are either blue or teal, which is bullish on the GoNoGo composite of indicators. Stochastics are turning up, telling us momentum may be back in this name, earnings hit likely in early February.
As a member of the EPS Diplomats, SiTime does not have a rating.
The Pro Portfolio is long SiTime.
