ON Semiconductor Corp (ON) On The Brink Of A Major Break-Out: What’s Next?

US-based ON Semiconductor Corporation (ON) offers a broad range of power and signal management, logic, discrete, and custom devices for various applications. The company operates globally with manufacturing facilities, sales offices, and design centers. ON is divided into three groups — Advanced Solutions, Intelligent Sensing, and Power Solutions. Its acquisitions have broadened the company’s technical capabilities and exposure to new end markets. Product lines include bipolar transistors, diodes, filters, FETs, rectifiers, thyristors, AC-DC controllers, DC-DC converters, drivers, voltage controllers, references, and supervisors. ON is listed on NASDAQ and is a component of S&P 500 under Information Technology.

Breaking Out Of Wyckoff Accumulation

ON started 2022 moving in a trading range between $51 and $61. There were few attempts to challenge the resistance at $61 but unable to commit above, forming Wyckoff upthrust (UT). There was a huge spike of volume on 17 June but the resulting bar was narrow body, suggesting the presence of absorption. This could be explained by Wyckoff effort versus result whereby the increased effort did not result in further big down moves. Nevertheless, price retested and broke below the low of the range reaching $44.76 on 5 July. This has…