Analog Devices, Inc. (ADI
) reports fiscal fourth quarter earnings in Tuesday’s pre-market, potentially offering actionable insight into the Apple Inc. (AAPL) supply chain and the participation of suppliers in the iPhone X’s success or failure. Many of these suppliers’ stocks have posted mixed results so far in 2017, failing to match the tech icon’s breakout to an all-time high while highlighting growing risk if iPhone X sales fail to please shareholders.
Analog Devices CEO Vincent Roche is quick to point out that the company is more than an Apple supplier, manufacturing a variety of innovative products that include autonomous driving chip sets, but market players understand that the Cupertino connection has a major impact on Analog Devices’ share price. The same holds true with Skyworks Solutions, Inc. (SWKS
) and Cirrus Logic, Inc. (CRUS), filling out a trio of blue-chip suppliers vulnerable to its master’s product development. (See also: 10 Major Companies Tied to the Apple Supply Chain.) ) shares hit an all-time high at $103 in 2000 and sold off to a nine-year low in the mid-teens in 2009. The stock has spent the past eight years recovering those losses in a stair-step rally that stalled within 10 points of long-term resistance earlier this month. The stock has dropped into a trading range since that time as the weekly stochastics oscillator grinds out an intermediate sell cycle that could last into mid-December.
November price action is testing resistance at the June 2017 high at $90.49, with a rally above $93 confirming a breakout while setting the stage for the uptrend to complete a 100% retracement into the multi-decade high. Conversely, a breakdown through range support and the 50-day exponential moving…