Sagar Nandi
Nine reasons to be cautious with this semiconductor stock.


All the snapshots are taken ~10:10 AM EST on 8th Feb. Numbering in the text below follows the marking on the pictures.

CUE Technical Analysis

Weekly Backdrop chart template.

1) In the weekly chart, CREE displayed a bearish Headwind in June 2018 from where the price fell significantly. That Headwind left a Watermark resistance pivot mark on the chart.

2) Now, the price came to the same Watermark resistance and stopped, created a false upside breakout.

Daily Entry chart template.

3) Daily had a long upper tail candle after earning and that was followed by a bearish Headwind signal day, showing that the bullish pressure was not there and bears were coming in.

4) CREE has a Memory support trendline just below current price. That is providing support. You may keep an eye on CREE to see if that support holds or breaks.

Daily Long Term Pivot template.

5) CREE also created a false upside breakout at the long-term quarterly and yearly pivot levels.

CUE Vital Fundamental and Peer Analysis

6) CREE is overvalued, shown by magenta color Valuation score in CUE Vital stock scorecard.

7) The stock has negative earnings growth in all the past three yearly periods.

8) CREE's Earning Quality is poor, shown by the magenta color score.

CUE Edge Industry Rotation Analysis

9) CREE's industry, Semiconductors, was strong (cyan) and is weakening now. Today's score using real-time industry rotation analysis is in magenta color, which tells the industry is weakening.

CUE 360° analysis outcome

CREE's fundamentals are poor. Its industry is weakening. On CUE charts, if CREE falls below the daily Memory support, long position holders may exit with profit and short position holders may look for a low-risk short entry.

CREE AAG 2019-02-08_10-04-35.jpg CREE Long Term Pivot 2019-02-08_10-05-50.jpg  CREE VITAL 2019-02-08_10-08-04.jpg  cree EDGE 2019-02-08_10-09-27.jpg 
Sagar Nandi
I shared the initial post on CREE on 8th Feb where I mentioned that one might look for shorting opportunity if the daily Memory trendline was broken.

As of today, 20th Feb midday, the Memory support is not broken (shown as point 1 in the attached chart) and CUE traders will scratch the short trade idea, at least for the time being.

cree scratch 2019-02-20_11-22-40.jpg 
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