Monolithic Power Systems (MPWR - Get Report)
Average Volume: 322,328
Volume % Change: 129% Shares of MPWR are surging today after Stifel Nicolaus raised its rating to buy from hold, citing the company's "renewed focus on higher-value products, end-market diversification and attractive financial model," with solid free cash-flow generation. From a technical perspective, MPWR is ripping higher here on monster volume, and the stock is flirting with its 50-day moving average of $19.66. At last check, MPWR has hit an intraday high of $19.84 and volume is well above its three-month average action. Traders should now look for long-biased trades as long as MPWR can keep a trend over its 50-day with strong upside volume flows. I would consider any upside volume day that registers near or above 322,238 shares as bullish. If we continue to see that trend, then MPWR could easily retest its 52-weeek high of $22.40, in the near future. On the flipside, I would avoid this stock, or look for short-biased trades, if it fails to hold that trend above the 50-day, and then takes out some near-term support at $17.70 with heavy volume.