Ambarella is trading in a bullish trend and several arguments are in favor of the continuation of this trend.
The economic and financial situation of the company is still strong. Estimated sales from Thomson Reuters consensus are encouraging (around 20% growth each year until 2016).
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend has been stopped around USD 36 but the support level currently tested should give a new impetus to the stock.
Trend remains positive until prices are above the trend-line and the USD 28.8 short term support. This trend should allow the stock to reach its USD 35.6, which will be the first target price.
According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish trend should allow the security to reach the USD 35.6 resistance. If the stock crosses it, a new target price will be set. A stop loss will be placed under the USD 27.
Ambarella, Inc. is a developer of low-power system-on-a-chip (SoC) semiconductors that provide artificial intelligence processing, image signal processing and video compression. The Company serves human-viewing applications with video and image processors for enterprise, public infrastructure and home applications, such as Internet protocol, security cameras, sports cameras, wearables, aerial drones, and aftermarket automotive video recorders. It is focused on creating AI technology that enables edge devices to visually perceive the environment and make decisions based on the data collected from cameras and, other types of sensors. Its CVflow-architecture supports a range of computer vision algorithms, including object detection, classification and tracking, semantic and instance segmentation, image processing, stereo object detection, terrain mapping, and face recognition. Its CVflow processes other sensor modalities, including lidar, radar, time of flight, thermal and near-infrared.