“Trade of the Day” for Wednesday, 10/16

Kulicke and Soffa Industries, Inc. (KLIC) is a $984 million technology company that designs, manufactures, and sells capital equipment and expendable tools to assemble semiconductor devices, including integrated circuits, discrete devices, light-emitting diodes, and power modules.

KLIC had been consolidating sideways for much of 2013, but a favorable Barron’s article over the weekend triggered buyers and a high volume breakout above the recent trading range.

KLIC weakened a bit on Tuesday.

Tom’s Take: We like entry at two levels, the first at the top of gap support at $12.80 and the second at price support at $12.48. Consider a closing stop beneath the bottom of gap support at $12.09, while our initial target would be $14.50.

— Tom Bowley, Invested Central

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Disclaimer: You should consider these educational charts and analysis for possible short-term trades only. We are not registered investment advisors and the Trade of the Day should not be viewed as investment advice. Accordingly, please check with your financial advisor before deciding to buy or sell any of these investment securities. Because we do not recommend holding a stock into its earnings report, please check all earnings dates on stocks featured before making a decision on whether to consider a trade. Invested Central’s staff may take long, or short positions in stocks, bonds, and other financial contracts on which they comment.

Tom Bowley, Invested Central

Invested Central Chief Market Strategist and StockCharts.com contributor Tom Bowley has taught thousands of traders around the world how to analyze the markets and make money trading.