Long Position on MLNX @ $50.50 on 7/13/2016 (Momentum)

Bullish Cup and Handle on MLNXMellanox Technologies, Ltd. (MLNX) is a fabless semiconductor company.

The firm designs, manufactures, and sells interconnect products and solutions. The company’s products are used for computing, storage, and communications applications in the high-performance computing, Web 2.0, storage, financial services, enterprise data center, and cloud markets.

Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems.

The company offers 40/56/100Gb/s InfiniBand solutions, including switch and gateway integrated circuits (ICs), adapter cards, cables, modules, and software, as well as switch, gateway, and long-haul systems; 10/40/56Gb/s Ethernet solution for use in EDC, HPC, embedded environments, hyperscale Web 2.0, and cloud data centers; and 10/25/40/50/56/100Gb/s Ethernet NICs.

It also provides adapters to server, storage, communications infrastructure, and embedded systems original equipment manufacturers (OEMs) as ICs or standard card form factors with PCI express interfaces; and switch ICs to server, storage, communications infrastructure, and embedded systems OEMs to create switching equipment.

In addition, the company supports server operating systems, including Linux, Windows, AIX, HPUX, Solaris, and VxWorks.

Mellanox Technologies, Ltd. markets its products under the Mellanox, BridgeX, Connect-IB, ConnectX, CoolBox, CORE-Direct, GPUDirect, InfiniBridge, InfiniHost, InfiniScale, Kotura, Mellanox Federal Systems, Mellanox ScalableHPC, Mellanox Technologies Connect. Accelerate. Outperform, MetroDX, MetroX, MLNX-OS, Open Ethernet, PhyX, SwitchX, TestX, The Generation of Open Ethernet, UFM, Virtual Protocol Interconnect, and Voltaire trademarks.

The company sells its products through its direct sales force, a network of sales representatives, and independent distributors worldwide. Shares have formed a bullish "cup and handle" and are in the process of moving higher from this formation. Higher share prices are expected for this stock. 

 

52-Weeks Trading Range: $32.24 - $55.80

Entry Point: $50.50

Stop Loss: $47.80

Target Price: $55.55 

Updates

7/27/2016 12:15:26 PM

MLNX closed at $46.00

Position closed on 7/27/2016 at price of $46.00 with a -8.91% loss in 14 days.

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