A DROP IN ISRAELI BASED AUTONOMOUS DRIVING CHIP MAKER MOBILEYE MAY BE A BUYING OPPORTUNITY

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By Nigam Arora & Dr. Natasha Arora

Signal Limited is a Signal(s) with a great record in similar situations but does not meet all of the stringent criteria for a Signal.  Typically Signal Limited has higher risk-reward compared to a Signal over the short term. 

Attack On Israel

Please start out by reading the Morning Capsule for details.

Shares are falling because the company’s headquarters are located in Israel.

Autonomous Driving

MBLY makes chips for autonomous driving vehicles.  Here are the key points:

  • Its most important product line, EyeQ chips, are not manufactured in Israel.
  • There is some negative impact as some of its employees are called for military duty.

Intel

MBLY is majority owned by Intel (INTC).  Intel has more resources across the globe to contain any negative fallout.

Zones

The stock may trade in a wide range.

The buy zone is *** (To see the locked content, please take a 30 day free trial), preferably below ***.  Be sure to scale in small tranches.  Scaling in is a technique used by billionaires and hedge funds to learn more, read Trade Management Guidelines.  MBLY is trading at $38.86 as of this writing and very volatile.

Maximum recommended position size is *** of full core position size but reduce it based on personal preference.

This is a medium term position.

The target zone is $66 – $69.

The stop zone is ***.  Those wanting a closer stop zone can consider ***.

Tesla

If you are going to take this trade, keep a close eye on Tesla stock (TSLA).  Tesla stock will need to hold above $215 – $226 for this trade to work.  Also keep a close eye on stocks of other semiconductor manufacturers such as Nvidia (NVDA), AMD (AMD), ARM (ARM), Qualcomm (QCOM) and Micron (MU).

See also  WEEKLY STOCK MARKET DIGEST: WORST WEEK FOR THE STOCK MARKET IN 2024 – WHAT TO DO NOW

Caution

If you are going to enter this trade, carefully start with the Morning Capsule first.  The trade will work only if the following occur:

  • The conflict is limited to Gaza.
  • The market mechanic of year end chase is to the upside.
  • Long term interest rates do not rise.

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This post was just published on ZYX Buy Change Alert.

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Nigam Arora

Nigam Arora

Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.

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