A look at NXP Semiconductors (NXPI)

We received a question on NXP Semiconductors (NXPI).

NXPI has been a laggard but one that has improved in recent weeks after defending the 61.8% retracement of the April to August rally at 183.74 in late November. Holding the strengthening weekly moving averages, 38.2% retracement, and a chart levels from 218.85 down to 203.24 would suggest a more constructive pattern that resembles the setup from late 2022 into early 2023.

If the 218-203 area holds, the potential would build for a breakout above 239.91-241.42 that could trigger a rally similar to that seen from mid 2023 into mid 2024 with upside potential to 276 (100% extension), 296 (mid 2024 peak), and 312-313 (100% extension targets).

Chart 1: NXP Semiconductors (NXPI)

NXPI shows bullish rotation vs. the S&P 500 after defending relative range lows from late 2018 and early 2020 as support in late November.

Chart 2: NXPI relative to the S&P 500