Chart of the Week: Allegro MicroSystems
Hey everybody. It’s time for our chart of the week. It’s July 1, first day of the second half of 2026.
Let’s take a look at Allegro MicroSystems. ALGM is the symbol here. This is a good looking chart and I think it has some more upside to go.
As you can see here, boy: higher highs, higher lows. What is that? That is our textbook definition of an uptrend. This has been really strong since putting in a low at the end of March when a lot of semiconductor stocks did the same thing. This company is involved in AI, automotive, and data chips as well.
But on a technical basis, we’re gonna look at the chart here, and you can see that this February level was a tough nut to crack here. But once it broke through that, it went through that at the end of May, tracked it back in the early part of June, and ever since then, it’s just been on an incredible run here. And this last couple of days, fantastic move up to new highs on the Allegro.
We also see good relative strength here.
You see very positive momentum in the on-balance volume at the bottom over here We see a crossover move, bullish, from the middle of June in the MACD and that continues on today.
And you know, higher highs, higher lows, certainly very favorable. It means more buyers are gonna be coming in on this name.
Could it come back down? Sure. Could it come back down and test that 50 day moving average?
But I will tell you this. The last couple of times it came down and tested that 50 day, it gapped above it here, tested it here, tested it here, and it took off to the upside.
If you decide to jump on board here, it is a little bit overbought. But overbought doesn’t seem to bother this stock very much at all. Look back over here at the end of April, beginning of May. And then of course beginning of February, the stock was overbought for several weeks. So it doesn’t much matter if it’s overbought. It’s just a condition, it’s not a signal.
So take a look at Allegro MicroSystems. I think this stock’s got room to get to $100 before it’s all over, maybe a little bit higher than that.
But certainly the big volume move over the past two and a half weeks, which you can see right over here, and then a big volume move on Monday the 29th, was very impressive.
So take a look at ALGM, Allegro MicroSystems. Thanks so much for watching everyone, and I’ll see you guys next time.
