Rambus, a US technology company, develops hardware and software technologies used in digital electronics products. Their customizable IP cores, chips, tools, and software enhance their customers’ competitive advantage. Rambus collaborates with industry leaders, foundries, and IP developers, with products integrated into billions of devices, powering and securing applications like IoT, Big Data, and mobile payments. The company is known for inventing RDRAM and developing XDR DRAM technology used in the PlayStation 3. RMBS is listed on NASDAQ and is a component of S&P 600.
Breaking out of Wyckoff accumulation phase
RMBS was traveling in a Wyckoff accumulation range between $21.65 and $30 for most of 2022. There was a rally and attempt to break the $30 resistance with an increase in volume. Nevertheless, there was no follow through to the up side and that became a Wyckoff upthrust (UT) when the price retraced back into the trading range. In fact, the price broke below the low of the trading range in a Wyckoff spring manner on 5 July.
This was followed by a minor Wyckoff sign of strength (SOS) rally. The accumulation phase was near completion when the price gap up on 1 Nov to start a major SOS rally. The SOS rally was the best rally thus far and was accompanied by an increase in volume. The rally paused around $38.80 and consolidated in Wyckoff back up (BU) for almost two months.
Since 2023 RMBS has been trending up to challenge the $44 axis line. However, it was unable to stay committed above $44 and is consolidating.
Bias
Slightly bullish. According to the Wyckoff method, RMBS is consolidating between $40 and $44. There is no threatening volume suggesting the up trend is likely still intact. Should it be successful at breaking out from the BU phase, the price could reach $47.50 and $60 subsequently.
If the price breaks below $38, it will likely retest the swing low of $35.50 followed by $30 with a prolonged consolidation in the trading range.
RMBS was discussed in detail in my weekly live group coaching on 14 Feb 2023 before the market opened. Despite the sharp market correction due to the two forces as discussed in the video below, RMBS exhibited strong relative strength while the whole semiconductor group has been outperforming too.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.