Editor's Note:

If you are looking for a bearish candidate then check out shares of General Motors (GM). The stock continues to underperform and it is poised to breakdown below support near $33.50 and hit new multi-month lows. I would not be surprised to see a drop toward $30.00. However, we would not want to hold over GM's earnings report in about two weeks (April 24th).


Analog Devices, Inc. - ADI - close: 54.30 change: +0.34

Stop Loss: 52.75
Target(s): 59.75
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 09, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
ADI is in the technology sector. The company makes integrated circuits (semiconductors). After ADI reported earnings in February the company has seen multiple analysts either upgrade the stock or raise their price targets on ADI. Investors also applauded the news that ADI was raising its dividend and increasing its stock buyback program.

Shares of ADI are currently sitting at multi-year highs. The stock has been consolidating under resistance near $54.30 for the last three weeks and now it looks poised for a breakout.

I am suggesting a trigger to open bullish positions at $54.55. If triggered our target is $59.75.

Trigger @ 54.55

Suggested Position: buy ADI stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the May $55 call (ADI1417E55) current ask $1.05

Annotated chart: