BALTIMORE (Stockpickr) -- As an investor, there's nothing like waking up one morning to find out that one of your favorite stocks just got acquired for a fat premium -- and the semiconductor industry has been the place to be for buyouts in 2015.
Year-to-date, merger and acquisition activity in semiconductor stocks is up 921% to $69.7 billion in deals. That number got a big shot in the arm this morning, after Avago Technologies (AVGO) announced it was buying Broadcom (BRCM) in the biggest acquisition deal in the tech sector.
The question now is "Who's next?"
Instead of focusing on the fundamentals behind the next potential chip acquisition target, today we're turning to the charts for a technical look at three big chip stocks that could become buyouts.
For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.
Looking at the technicals for a buyout candidate actually makes a lot of sense. After all, when it comes to getting in to a stock trade, timing is everything. Technical analysis provides a risk management framework that helps you get the timing right. Likewise, technical strength can also be a buyout indicator. For instance, it indicates when market participants are accumulating shares.