This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
Finally, a peace deal has been thrashed out and agreed between the US and Iran.
Will this deal stand for a long time or does it remain as fragile as the past ceasefire agreements? Only time will tell.
Regardless, this doubt wasn’t a major concern for market participants. They were thrilled by the outcome, leading global stock markets to rally hard.
Did you benefit from this market move?
Amidst this optimism, I’ve scanned and discovered this stock for a position trading – FormFactor.
Let’s dive in, shall we?
Brief History of FormFactor
Source: formfactor.com
FormFactor provides test and measurement solutions for semiconductors and engineering systems. The company also produces high-demand memory cards.
Founded in 1993, the company set out to find solutions for fragile pins in chips and to shrink them to fit into ever-smaller semiconductors. Years passed before a reliable solution was found.
Growth exploded, propelling the company to be the undisputed leader in DRAM probe cards.
Flushed with newfound wealth, FormFactor didn’t rest on it laurels. Instead, it expanded through strategic acquisitions and solidified its standing in the semiconductor space.
FormFactor is doing what investors love. But are its shares ready and worthy for a position trade?
Business Model and Financials
Source: tradingview.com
Let’s look at 2 key metrics from the image above – total revenue (in blue) and net income (in yellow).
Did you notice that the total revenue of FormFactor grew every year except for 2022 and 2023?
This consistent increase in its total revenue is highly welcomed in any sector.
Here’s another important fundamental metric to consider: net income.
Can the same be said of its net income?
FormFactor’s net income has been swinging like a pendulum, but without a clear rhythm. This is normal for innovative companies that focus on research and constantly finding new breakthrough solutions. Therefore, I think that there’s no cause for concern regarding its net income.
Are these strong enough reasons to consider buying the shares of FormFactor for a position trade?
Let’s look at its stock chart for more clarity.
Technical Analysis on FormFactor (NASDAQ: FORM)
This is the chart of FormFactors’ stock.
What can you infer from it?
I can tell that FormFactor’s shares were in an uptrend for several months until early May 2026. When the bulls are in charge, you’ll see more blue candles (outlined and solid) compared to those in red.
The situation changed from early May to mid-June 2026. The bears woke up and took charge, pressing prices lower. Before long, the bulls returned (partly thanks to the peace deal between the US and Iran).
Knowing this, I’ll look for a buying opportunity.
Do I need to plot support and resistance, trendlines, or slap on other indicators to help you determine the right time to buy its shares for a position trade?
Nope, I don’t have to.
All I need to do is refer to the 2 proprietary indicators – the green arrow and Trend Impulse Factor.
When there’s a green arrow under a blue (outlined or solid) candle, it signals a fresh bullish move. Do you see it under its latest candle?
Let’s turn our attention to the other proprietary indicator – Trend Impulse Factor.
The Trend Impulse Factor indicator is curated to inform traders whether the move in the market is likely to be sustainable, giving you and I an edge.
When the bar of the Trend Impulse Factor indicator is dark green in color, it suggests that this bullish move is likely to be sustained. Now, let’s have a look at the color of the Trend Impulse Factor indicator’s bar.
It’s not dark green in color yet, suggesting that the time to buy its shares for a position trade isn’t ripe yet.
However, I think that it’s about to turn dark green in the coming days or so, so I’ll be watching this stock extra closely.
Conclusion
Source: pexels.com
After a moment of enhanced volatility, the US stock market is turning peaceful again. This is thanks to the peace deal agreed between the US and Iran.
Instead of spending hours scanning the US stock market, I just spent a couple of minutes scanning for this potential position trading candidate using the TradersGPS (TGPS) system.
FormFactor is an exciting technology company that’s supporting the AI industry. It boasts a growing revenue, and its future looks bright. I’m optimistic.
But should I buy its shares now?
Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won’t have to feel in the dark and make wild guesses.
Relying on the green arrow and the color of its Trend Impulse Factor indicator, I can tell that its shares are not ripe for a position trade for now.
However, I’ll keep this stock in my watchlist because I anticipate an entry appearing soon.
What are your thoughts?
Share your thoughts with me below!
