ON) Move Upwards to Crack ATH?
ON stock has been going up since 2023 and buyers are piling up. The stock hit a wall near the supply zone and bounced back. ON stock price was at $98.51 with an intraday decrease of 0.99%. Moreover, the intraday trading volume of ON is 4.723 Million less than the 10-day aggregate volume of 4.807 Million.
The price-to-earnings ratio, or P/E ratio, shows how much investors pay for each dollar of earnings. A lower P/E ratio means a cheaper stock. ON’s P/E ratio is 21.7x, which is lower than the industry average of 26.4x and the fair value of 27.2x. This means ON’s stock is a good value. This is as per the information on the financial website, Simply Wall St.
According to the price action, the ON stock is showing signs of a big rise, with a chance to grow more in the next sessions. The stock is moving up with the help of the buyers, who are trying hard to maintain these levels.
Based on recent data, the revenue of Q2, 2023 was $2.09 Billion with a net income of 576.60 Million. Moreover, the ON stock estimated EPS for Q2’ 23 was 1.209, and the reported EPS was 1.33 which gave a positive surprise of 10.03%. Moreover, the forecasted EPS for the next quarter is positive at 1.34.
The ON stock (ON Semiconductor Stock) continues to show bullish momentum in the uptrend above the key moving averages. However, the trend earlier showed some indications of a weakening in the share price as the price took a pullback but reversed from Fibo 38.20%. On the daily charts, ON stock is in the bullish zone and has maintained the uptrend above the 20 and 50-day EMAs.
Technical Analysis of ON Stock Price in 1-D Timeframe
As per price action, ON was in a bullish trend from October last year even before 2023 started. The ON price found support around $55 and was strongly bought as it was available at a discount at that period. From the low of $55 to the high of $111, the journey was adventurously upwards, the high was reached by July 31st, 2023. Moreover, the price moved along the Fibonacci levels of 78.60%, 61.80%, 50.00%, 38.20%, and 23.60% and respected its levels effectively. As noticed on the charts, it rose firmly from these Fibo levels.
As per the CMP $98.51 (at press time), the price faced some resistance earlier after the earnings release a significant profit booking was observed and dropped to form a support at $89 also Fibo 38.20% level, it was treated as a pullback and the price took a rebound and bounced back upwards.
Moreover, the stock is undervalued by 19.3% as per CMP, the about-right estimated fair value is $122.06, which the company is expected to generate in the future, as reported by Simply Wall St.
Therefore, the current stock price of ON stock might achieve more, there is a possibility for the price to move toward the next resistance level of $105 and an annual high of $111.
On the other hand, if the price breaks below the $95 significant support level, it might fall toward $89 and beyond.
At the time of publishing, ON Semiconductor Corporation. (NASDAQ: ON) is trading above the 20, and 50 EMA. RSI is around 54, turned bullish as it took 14 SMA support and above the median line and MACD gave a bullish crossover on the charts and the histogram gap is widening indicating reliable momentum.
Summary
ON’s stock prices have been going up lately, trading above $95 per share and showing signs of a strong upward trend. The stock prices could break through the annual high of $111 if they keep rising. The technical indicators for ON also confirm the positive outlook, as they have turned bullish. The market sentiment for ON is also optimistic, as many traders and investors are buying and holding the stock.
Technical Levels
Support levels: The nearest support levels for ON price are $95 and $89.
Resistance levels: The nearest resistance levels for the ON stock price are $105 and $111.
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
