Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Underexposed Technical Analysis -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (467)	9/1/2019 2:19:20 PM
From: Underexposed	Read Replies (3) \| Respond to of 914

USA: TA Analysis of Brooks Automation Inc. [NASD GM:BRKS] I'd like to propose BRKS for the US fund. I'd love to hear your TA on it. I will give it my full attention in this post.... thank you for your submission. Brooks Automation Inc is a United States-based company that is principally engaged in its semiconductor business. The company has two core business segments: Brooks Semiconductor Solutions Group, which primarily provides wafer handling robotics and systems, semiconductor contamination control solutions, cryogenic pumps and compressors, and support services; and Brooks Life Science Systems, which mainly provides automated cold-storage systems, sample management services, consumables, instruments and devices, informatics, and support services. It generates most of the total revenue from the Brooks Semiconductor Solutions Group segment. It has a business presence in North America, Asia-Pacific, Europe, and elsewhere. We will take a look at the Financials first.... they can be found here BRKS Financials Income (quarterly) Total revenue: Very strong and steadily rising to $203,880,000 Net Revenue:The Net Revenue has been falling steadily from $22Million to $7Million Balance Sheet Current Debt: The current debt has declined slightly to about $6Million Long term Debt: Has been creeping higher at $535Million The Financials seem decent enough.... But why is there a drastic fall back in July..... I have a feeling it has to do with semiconductors and trade with China. In reading the news on this company there is concern about the year over year net revenues and to illustrate it I copied a portion of the income statement from Jun 19/19 you can see despite marginal revenue increases the net revenue has taken a huge hit.... This is the limit of my Fundamental Analysis. I cannot really identify the cause. Here is the link to this Form 10 : BRKS Form 10 Jun/19 Perhaps someone with more experience in this area can comment further. Technical Analysis I will start with the P&F chart there was obviously a huge drop in price starting in late July ending in the beginning of August. It eventually formed a pennant at the bottom. The top diagonal line used to be a resistance line put it has now turned into a support line. The share price is approaching its first test at $33.75... this does not seem to be a strong resistance and the Double top breakout from that pennant is bullish The column SMAs are wide apart and showing no sign of reversal mildy bearish I think it is an example of your BB width and Macd pinch. Yes sir indeed! It is a very good example.... do you see how that would be a huge signal if you were shorting this stock.... I think covering the short after the MACD turned upward AND the BBWidth turned down. I don't short but that formation would be my guide as to when to get out. and cover the short. The BBwidth is at a position where a major movement looks to be possible soon. The Share price is at the top of the upper Bollie... the MACD is rising BUT....the Slow Sto is incredibly weak.....It cannot even drag itself over 20.... this indicator is very bearish I would expect the share price to decline soon. The sentiment chart is pretty easy to read. The Par Sar is in the throat of a Bollie squeeze so I will say it is now bullish The Force 30 is still bearish but declining... mildly bearish The RSI 30 is below 50 rising slightly... mildly bearish The DI +/- is bearish with the red over green but the gap is declining so it is mildly bearish The Ichimoku in the main chart is bearish as it is far below the green cloud.... it would be even more bearish if it did not rapidly rise to hit that weakness between clouds... if it misses that it will be under a bigger red cloud... not good Look at the gap between the thin blue line and the bearish red line...bearish The OnBal Vol is neutral The CCI is rising almost to 50..... bearishly neutral The CMF is in bearish territory but rising... mildly bearish Conclusion A casual glance at the highlighted bull/bear indications show there are some bullish ones but not enough to cancel out the bearish highlights, As a result I see this stock going sideways for a while... the position in the Ichimoku chart and the poor Slow Sto cement my opinion that the stock probably won't pass the first resistance and definitely not the second. I would put it on a watch list since a continued rise could change things rapidly... but right now I would not put money into it. Thanks for the submission... it certainly demonstrates the use of a MACD/BBWidth pinch for thos who short. UE