Superior Swing Trading: TER's 25.33% Rise via Sector Rotation Strategy
Unleashing the Power of Swing Trading: A Look at TER's Sector Rotation Strategy
The merits of using a blend of technical analysis (TA) and fundamental analysis (FA) in formulating a robust trading strategy can never be overstated. This has been aptly demonstrated in the recent performance of Teradyne (TER), whose sector rotation strategy has effectively generated a remarkable 25.33% return for swing traders.
A central component of this approach has been the Aroon Indicator. This technical analysis tool is designed to uncover the beginnings of new trends in a stock's price movement, thereby making it a crucial instrument for swing traders. The Indicator functions through two lines, the AroonUp and AroonDown, and it is the relationship between these two that offers valuable insight into potential future price movement.
On July 12, 2023, the Aroon Indicator for TER flashed a bullish signal, indicating the potential for an upward price swing. This was derived from the AroonUp green line surging above 70, coupled with the AroonDown red line dipping below 30. Such a combination is typically regarded as a strong indicator of impending bullish activity. Consequently, traders may opt to either purchase the stock or consider buying call options, given the promising conditions.
The historical analysis further enhances the conviction in this bullish signal. Out of 296 prior instances wherein the Aroon Indicator exhibited a similar pattern, the stock moved higher in 246 cases. This historical success rate of 83% not only substantiates the potential of this strategy but also suggests a high likelihood of an upward trajectory for TER in the coming days.
The Swing Trader Sector Rotation Strategy used by TER is a potent example of how the synergistic application of technical and fundamental analysis can yield noteworthy results. The signal provided by the Aroon Indicator, in this case, exemplifies the strategic use of technical tools to anticipate potential market movements, enriching the toolbox of strategies for swing traders. Future performances will show whether this bullish signal will turn into substantial gains for those ready to capitalize on it.
TER in downward trend: price expected to drop as it breaks its higher Bollinger Band on September 22, 2025
TER broke above its upper Bollinger Band on September 22, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 51 similar instances where the stock broke above the upper band. In of the 51 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TER moved out of overbought territory on October 07, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for TER turned negative on October 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TER declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where TER's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 21, 2025. You may want to consider a long position or call options on TER as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TER advanced for three days, in of 291 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 292 cases where TER Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. TER’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.039) is normal, around the industry mean (8.808). P/E Ratio (49.767) is within average values for comparable stocks, (46.116). Projected Growth (PEG Ratio) (1.594) is also within normal values, averaging (2.492). TER has a moderately low Dividend Yield (0.003) as compared to the industry average of (0.011). P/S Ratio (8.230) is also within normal values, averaging (46.446).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an electronic test systems manufacturer
Industry ElectronicProductionEquipment
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