Atmel Corporation! Help me!

I have recently received an email from an investor and also a frequent visitor to my humble blog. His name is Danny, he has invested in Atmel and is currently down by $2000. That is a lot of money to my and worth about few good Invicta' Watches at Amazon.

Anyway, as an author and founder of my humble blog, The Market Oracle, my aim is to help as many people as I can with my knowledge, skill and experience that I have gained after more than 13 years trading in the market.

His question is should he hold this stock through 2012. First of all, I did not know what is his entry price, but I figure it out, it should be at $11.20 level based on the current price of around $9.6 (based on 15% loses), for him to lost around $2,000.

Well, I promise you Danny, I will try my very best to honestly tell you what you should do now. As usual, I will first analyze the Long Term Chart follow by the Short Term Chart. I will then look at the fundamental side by analyzing the quarterly earning growth.

 Email from Danny

Based on the long term chart above, the strong support for Atmel is at the $8. The 1st resistance for Atmel is at the $12 level. Looking at the chart above, I believe that Atmel have a chance to test the first resistance at $12 based on the current market situation. The current US market is growing stronger day by day. Even though there are many negative news coming from Europe and also China, however, it does not stop DJIA from rallying day after day. I believe that the overall market is still strong and have lots of room to grow further.

Based on the short term chart, currently Atmel is in an upward trend. I believe this upwad trend will last a little longer as most of the upward move did pause for a slight consolidation. If Atmel is moving up fast and strong without consolidation in between, then I am dead worried, cause I believe the faster this stock go up, the faster it will come down as well. If I am correct, I believe that next week, Atmel will head to the $11 at least. The current 2 important technical indicators, the MACD and Stochastic, even though do shown a little negative signal, I believe that it is not a crucial issue here, because the negative indicators are merely pointing towards a short term consolidation move for Atmel.

Based on the quarterly earning for Atmel, Atmel is showing stable growth ahead. As long as it didnt show losses, it should be a safe haven stock to invest in. Even though the future forecase quarterly earning for Atmel is flat, but I believe that the super touch screen technology that Atmel supplies to many smart phone and tablet company is right on track for the future growth and potential of the company.

Conclusion:
I believe that if the US market continues its upward move, I believe that many stocks will continue to surge further which includes Atmel. There a lot's of money which have yet to enter the market will do so in the coming month and bring the whole market to the pre crisis level.

Therefore,  my advise is to hold and Atmel and continue to ride this stock to the $16 level based on your entry price at around $11.20 for a 40% gained. It is definetely not a good time to surrender and sell this stock for a loss of $2,000. Continue to ride this stock and play based on range trading of between $8 and $12.

Good luck and god bless.

Disclosure: - I currently do not hold any stock in Atmel but may initiate an entry position if the Atmel did not perform as I have analyzed and if Atmel move to the important support of $8.00. If Atmel move downward and hit $8.00, it is definetely a big buy for me.

I will Shut Down My Blog if ....

 

Above chart is an example of a chart which 90% resemble to the Atmel Corporation chart during the consolidation period as per below. The chart above as per the highlighted boxes show the indications of the continual upward trend for this stock.

Click on the above image to enlarge

Yes, the above heading is correct, I promise all my reader here that I will shut down this blog which I have give in my 100% effort to help my fellow visitors here to make good money if I am wrong about my investment in Atmel. I am currently heavy invested in Atmel and I am down by around 4%.

If Atmel touches my stop loss and also broke the uptrend range line at $15.00 or if I lost more than 10%, then I will shut down this blog.

The reason I am doing this is because I would like to maintain a good reputation and also the accuracy of my prediction.

I am confidence that Atmel will continue its upward trend because:

1) the upward range line is not broken

2) the reducing volume indicates that the selling is over or fully absorbed by the buyer

3) the recent upward surge with a big gap and big volume is a good sign that powerful buying force is behind the upward move

4) the MACD indicator shows that the consolidation is over and now it is ready to resume its upward trend

5) the increasing quarterly earning that continue to beat analyst estimates for the 2 consecutive quarters.

6) my sixth sense

Will All Upside Gap Be Filled?

A Picture of a Nice River Gap in Between

Click on the above image to enlarge 

I have recently bought 7,000 stocks in Atmel Corporation at $16.40. I have dump almost all my savings worth around 100K ($25$ was taken out of my account to clear my off my housing loan) in this stock. The price of Atmel is now trading at $15.84 and  I have lost more than 3% as of today. Do I regret it?
Yes and No. Yes, because I should have bought at the current price of $15.84 and lower. No, because this stock can resume its superb upward move anytime and I may miss this bullet train. Whatever it is, it is all history cause I have already invested in it and all I can do now is to sit tight and wait.

However, I chooose not to sit tight and wait cause this is my life saving in here that I am betting on. I decided to ask myself a very important question which is, will the recent run up gap in Atmel be filled? If Atmel were to fill back the recent upward gap to $15.00 then I will lose more than 10% from the level that I have bought.
Although I believe there is always the possibility, but I believe that the probability is low.

I have seen more than few thousand charts during my last 13 years of trading the stock markets, some get filled and some dont. I believe in this case, Atmel recent run up gap will not be filled.

The reason is simple, the recent upward gap in Atmel is supported by the monstrous earning which they have reported in the latest quarter. Analyst from all over were upgrading this stock and raise its target price and earnings estimates. Moreover, the recent craze into the touch screen products have not ended. Indeed, some believe that this is the only beginning of more innovative touch screen products to be unveiled. People are all crazy about touch screen products now. Just look around you and the gadget the people are carrying, I be that 1 in every 3 person is carrying a touch screen product, whether is a phone, a MPS player, a Tablet or in the coming future, notebook will have touch screen on it.

This is truly a madness for this technology and Atmel is truly a montsrous ready to roar!

Click on the above image to enlarge

If you look at the above chart for Crus, you can see that there are actually 2 upward gaps which have not been fillled. Once Crus have the first run up gap, it consolidated on the upper gap level until it is ready to rocket further. Same goes to the second upward gap, it is also not filled and this stock continue to roar forward ahead.

I believe that the current consolidation above the gap is Atmel is a very good sign, as long as it does not come down to fill the gap at $15.00, this stock have a 90% chances to power ahead. If it does come down to the $15.00 and go below, then this stock should be sold as further downtrend is expected. In other words, the stop loss should be at the $14.50 level to be accurately confirmed.

However, based on my experience and my sixth sense, I believe that this stock will continue to consolidate at the upper side of the gap and above the $15.70 level and once it has consolidates and flush out the weak holder, this stock will definetely resumes it upward trend. Moreover, any good news or analyst upgrade on this stock will easily serve as a catalyst for this stock to resume it upward run. Somehow, it happens many time that usually before the stock resume its upward move, good news or upgrade will suddenly pop up. Is it a coincidence or stock manipulation? I don't know the answer to it, you will have to figure it yourself, but I believe the stock operator will know this answer very well.

I believe now is a very good time to catch this train if you are currently not riding on it. Once the train start moving, you will be able to catch it unless you willing to pay higher for the train ticket at the next station.

Good luck and happy investing!

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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in The Market Oracle Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence. 

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The Future is Atmel Corporation

Click on the above Image to Enlarge

This stock has been consolidating for 3 straight days, the more it consolidates, the more this stock is waiting like a rocket ready to thunder upward. Although it seems like it is in an overbought position, but 3 days of consolidation were not able to bring this stock down, instead it remains strong and calm while in the consolidation mode. I believe the time is ripe for this stock to thunder ahead and reach $20 level within 2 weeks time and probably, $50 within a year. As long as touch screen is the future, Atmel will be our future.

Yesterday night, I only slept for 3 hours, my head feels a little dizzy and headache right now, do I regretted it? The answer is a big no. I am very happy cause I have spent more than 6 hours of my sleeping time researching for a stock which will help me reach my target of $1 million. I think I have finally found it. It is none other than Atmel. I am still very blur and dizzy while typing on this blog and sharing this very good news to my loyal visitors to my blog. I hope the info posted here will help you gain at least 50% and above. I, on the other hand is hoping for a 100% gain.

I have researched almost 50% of the stocks in NYSE and NASDAQ yesterday night and Atmel is my top pick and also my 1 and only pick.

So why did I pick this stock? The answer is simple, because it is my future and our future. The analogy is simple, Touch Screen is the future, Atmel is the future because it supplies the technology for touchscreen, The Market Oracle is the future because it highly recommends a buy on Atmel, and I am the future because I am heavily invested in Atmel and I will make more than 100% gain riding on this future technology provider company - Atmel. This will be our future because I sharing this wonderful and important research on this superb stock with you all here.

 From: http://www.cnbc.com/

This stock has delivered 2 powerful quarterly earning that beat the serious shit out of the analysts estimate. I believe this is not it, there will be more even thunderous earning that will be announced by Atmel in the coming quarter. This time it will not only beat the analysts estimate, but I believe, it might put the analysts who covered this stock out of their job and send them straight to their grave for not giving a respectful earning estimates for Atmel.

In future, more than 80% of our products will have touch screen on it, there won't be anymore button for you to push. You just need to touch. And you can be assured that Atmel will be there to supply this technology.

"Atmel® touch innovation, maXTouch™ is the next-generation controller technology for touchscreen applications that delivers both superior performance and low power consumption. The technology enables touch interfaces that identify, qualify, and track the user’s contacts with exceptional precision and sensitivity. With maXTouch unlimited touch, users can enjoy a sophisticated interface that is smart enough to ignore unintended touches. Atmel touchscreen chips are small enough to fit the most compact mobile devices and powerful enough to accommodate the larger screens on products such as digital tablets. The result: peerless touch interfaces that are intuitive, flexible, reliable, and battery-friendly".

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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in The Market Oracle Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence. 

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