Don't Ignore This Chart

Analog Devices Turns at Key Retracement Zone

Arthur Hill | 

There is a certain ebb and flow in an uptrend where the advances consistently outpace the pullbacks. Think of it as two steps forward and one step backward. The chart for Analog Devices (ADI) shows a big move to new highs from August to November and then a 50-62% retracement with the decline back to the 84 area. The move to new highs represents the two steps forward and the retracement represents the one step backward. It looks like the step backward is ending because ADI broke above the 50-day EMA with a two day surge and MACD moved above its signal line. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London.
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