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.
Aroon Indicator for TER shows an upward move is likely
TER's Aroon Indicator triggered a bullish signal on July 07, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 279 similar instances where the Aroon Indicator showed a similar pattern. In of the 279 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 03, 2025. You may want to consider a long position or call options on TER as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TER just turned positive on June 03, 2025. Looking at past instances where TER's MACD turned positive, the stock continued to rise in of 48 cases over the following month. 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 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for TER moved out of overbought territory on July 03, 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 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
TER broke above its upper Bollinger Band on June 06, 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 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TER’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 (6.845) is normal, around the industry mean (9.292). P/E Ratio (41.370) is within average values for comparable stocks, (63.103). Projected Growth (PEG Ratio) (1.424) is also within normal values, averaging (2.333). Dividend Yield (0.004) settles around the average of (0.020) among similar stocks. P/S Ratio (6.935) is also within normal values, averaging (34.424).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TER’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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General Information
an electronic test systems manufacturer
Industry Semiconductors
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