ONTO's $1.1 billion backlog; profit conversion is open. Weekly chart hasn't topped June peak; new highs need attempts, next downtrend break 50/50. It is bouncing off an uptrend line. If support breaks, 250 is strong; 256.41 and 247.30 below. A drop there likely rebounds; a fourth/third try may break the downtrend line.

Now, we move on to ONTO, which is ONTO Innovation. ONTO has a huge backlog of orders. As you can see here, ONTO has a backlog of orders worth $1.1 billion in the field of electronic technology. Can they turn that into a profit?

Looking at the weekly timeframe, we find that we have not yet reached our highest levels, and we recorded a weekly peak in June . Since June, the price has not risen above this level .

This does not mean that we cannot rise again , but this weekly tail of the peak illustrates how much it affects the chart, as new record levels are difficult to achieve except after several attempts.

As you can see, I have illustrated this through the downward trend line. We made one attempt, then a third, then a second, which is essentially the third hit on the downtrend line.

The next attempt, the fourth strike, will have a 50/50 probability of penetration. It's simply a matter of where that support is located.

Now, as you can see, I have an upward trend line connected to the lowest pivot level on September 3rd. This bottom here was on July 29, connected to September 3, and notice how the price broke through that area, but never moved away from the trend line.

In fact, on each of those days, the price movement was more like clinging to the trend line, and thus got an upward bounce on the chart. As you can see today, we are witnessing a rebound from its lowest level, thanks to the upward trend line . It's an interesting low support level.

Now, if this level breaks down, you will see a double support layer below it for ONTO stock. Firstly, the bottom of this parallel line will be at 256.41, and secondly at 247.30.

In short, the 250 level will form a strong support level, with a high probability of breaking the downtrend line , on a fourth and third attempt to bounce back above it. Therefore, keep an eye on this range for ONTO stock with this support.

If the price drops to this level , there will be a high probability of a rebound.