Movin' on up .... from NOK and RIMM to AAPL and Samsung

Gator's Chart of the Day: RFMD

Rf Micro Devices Inc was found to be in the Apple iPhone5 and is already in several Samsung phones.  RFMD makes chips that control antennae in both 3G and 4G wireless handsets.  Their largest customers used to be Nokia and Research in Motion.  Now the top customers are Samsung and Apple.  This change bodes well for future earnings.

The chart shows the stock has not been a pillar of strength.  The commonly watched moving averages (20, 50 and 200 sma) are beginning to transition from the bearish configuration with 200 on top, 50 in the middle and 20 on the bottom as the 20 has now moved above the 50.  The stock has recently pulled back after testing the 200 day and appears to have found support (maybe) just above the 50 day.

The Trade  
If the stock shows a little strength a partial position could be established with a stop just under the 50 day.  With a price under 4.00 a move of only a few pennies can be several percentage points so don't let things get out of hand with your trade.  There is a lot of trading that happened around 4.00 and Stockta.com shows 4.02 to be a level of significant resistance.  If the stock clears 4.10 you may choose to add to your position but it is likely to take some time to clear the 200 day unless some significant catalyst is identified.