2 Reasons XLNX Should Be on Your Short-Term Radar

Xilinx stock recently breached support at the century mark

Sep 24, 2019 at 2:34 PM
facebook X logo linkedin

The shares of semiconductor stock Xilinx, Inc. (NASDAQ:XLNX) gapped lower last Friday, Sept. 20, after the company said CFO Lorenzo Florez will step down, effective after second-quarter earnings are released on Wednesday, Oct. 23. What's more, XLNX stock has a history of sinking after back-to-back Fed rate cuts, though the shares could find some saving grace in the form of a key trendline.

More specifically, XLNX emerged as one of the worst stocks to own after the Fed cuts rates twice in 60 days -- something the central bank did just last week. After 10 prior signals, the security was higher one month later just 20% of the time, and averaged a one-month loss of 5.3%, per data from Schaeffer's Senior Quantitative Analyst Rocky White.

In light of Friday's aforementioned sell-off, Xilinx stock has already exceeded its average post-Fed signal decline. More specifically, the security surrendered nearly 9% last week, and breached recent round-number support at the $100 level. However, as alluded to earlier, XLNX's downside could be limited with help from a key moving average.

The security is back within one standard deviation of its 320-day moving average, after a lengthy stretch above the trendline. Over the past three years, the stock has experienced five similar pullbacks to the moving average, after which XLNX was higher one month later 100% of the time, averaging a gain of 6.9%. From the equity's current perch at $95.98 -- down another 2.1% today -- a similar rebound would put the shares back above $102.

XLNX stock chart sept 24

In any event, now is an opportune time to speculate on XLNX's short-term trajectory with options. The stock's Schaeffer's Volatility Index (SVI) of 31% is in the 26th percentile of its annual range, meaning short-term options on the security are relatively inexpensive at the moment, from a historical volatility standpoint.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI