ON | Long Setup | Bullish Recovery Flow | (May 2025)

ON | Long Setup | Breakout from Downtrend Channel + Bullish Recovery Flow | (May 2025)

1️⃣ Short Insight Summary:
ON Semiconductor (ON) is breaking out of its long-term downtrend channel, showing strong price action and renewed momentum. A recovery seems to be gaining speed, and May could be a key turning point.

2️⃣ Trade Parameters:
Bias: Long
Entry: Around current levels (post-breakout zone)
Stop Loss: $28 (providing extra room for potential liquidation wicks)
TP1: $56
TP2: $71
TP3: $76
TP4: $83

3️⃣ Key Notes:
The stock just broke out of its declining channel and is now testing the 50-day moving average — a common resistance, but price strength and flow suggest we might push through. We’re also sitting on a major support zone that mirrors the May 2021 level, which historically provided a strong bounce.

Here are the fundamentals:
Revenue: 77B
Net Income: $1.5B
Tangible Book Value: ~$16.50
EPS: $3.67
Free Cash Flow: $1.2B
Cash on Hand: $2.6B
Debt: $3.6B
Beta: 1.7 (fairly volatile)

The dividend yield is currently unknown, but earnings are projected to grow steadily, with strong acceleration expected heading into 2028. This setup offers a mix of technical breakout and long-term growth expectations.

4️⃣ Optional Follow-up Note:
This idea will be monitored closely throughout May. If the bullish structure holds, we could see multiple levels get hit. I’ll provide updates if price action confirms further strength.

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Disclaimer: This is not a financial advise. Always conduct your own research. This content may include enhancements made using AI.