SUN 12/4: MaxLinear, Inc. (MXL – NYSE) – PORTFOLIO UPDATE

PROFILE: MaxLinear, Inc. provides integrated, radio-frequency (RF) and mixed-signal circuits for broadband communication and data center, metro, and long-haul transport network applications worldwide.

This stock was most recently added to the High-Ranked Leaders WatchList on 2/5/16 as its shares were setting up in a base.

The stock broke out on 3/4/16 as shares traded above the TRIGGER PRICE of $17.85 while the day’s volume was well on pace to make the TRIGGER VOLUME. This bullish action always confirms a BUY signal.

Later that day MXL did trade back below its TRIGGER PRICE, and this may happen on occasion.

As I noted that weekend – “…if you bought the breakout earlier that day, you are following the rules, and doing it right. You should now treat this like any other trade, and watch Monday’s action for any signs of weakness. An initial indication would, of course, be if the stock continues to pull back with an increase in volume.”

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Charts courtesy of StockCharts.com

LATEST ANALYSIS 12/4: This selection lost a whopping -11% this past week, as the stock continues to fall from recently made new all-time highs.

Although there were some considerable declines on Wednesday (-4.5%), Thursday’s trading (-4.7%) was this only session this week with an measurable increase in volume.

On Friday, shares did hold the support offered by the 200-day moving average.

As continuously noted here – “Our 1st SUPPORT remains at the rising 200-day moving average…”

Looking forward to next week, shares are +9.13% above the BUY PRICE, and any considering trading below or a close below the 200 DMA ($19.12) would be the FINAL SELL SIGNAL.