Wolfspeed has upside potential due to sector demand and management quality, but requires a catalyst to overcome current technical resistance and pressure.

You have Wolf with an O, which is Wolf Speed, not Terra Wolf with a U, which is a completely different segment as well. We're talking about semiconductors, and looking at Wolf Speed, I mean, it's not the most well- covered semiconductor company, but it just got a conditional deal from the Department of War that gave it a good boost, but it started to pull out of semiconductors this week.

She is under some pressure. So how do you see it now, Tim?

Yes, and I don't blame you for that, WULF. It was an idea I shared with you twice in the spring. I may have made a mistake in mentioning it, but WOL F, yes. As you know, the semiconductor sector is obviously not booming like it used to be, but I see the demand for chips, factories and other things as very high, inspired by TeraFab and what Elon Musk is doing.

I view this stock as a great stock, and I loved seeing its chart. Its price rose sharply in the spring, then fell back to its previous level at the beginning of the year. Therefore, the stock still has room to rise.

I'm eager to see how KG will perform on the chart, but at this stage, as you know, I don't bring politics into trading, but management has a good track record of picking winning stocks.

Look at the companies you have invested in over the past year or so, such as Intel and others. I mean, these were among the biggest winners and best deals. So, at this stage, I like this sector, and I am following the management's track record of success.

And if they were willing to lend to these people , I think it was $1.5 billion, then I say, "Okay, let's take advantage of this trend as well."

Yes, you were right. A $1.5 billion funding commitment from the Department of Defense. I mean, looking at it from a trend perspective, there is definitely something that can be used as a hypothesis.

But , KJ, when we look at Wolfspeed's technical indicators, what do you see? Because it experienced significant movements until the end of spring and the beginning of summer, but it has appeared more stable since then .

It is currently in the assembly stage . I mean, if you look at this name, you'll find that it was out of the spotlight at this time last year . The trading range was between approximately $16 as a minimum and $22 as a maximum.

This range lasted for about eight months before we saw an upward breakout. It was a very strong breakout, but unfortunately, a head and shoulders pattern formed at the market peak in May.

We have once again witnessed a break in this pattern, with the price falling below the 50-day moving average , the 20-day moving average, and even the 200-day moving average. But since then, we have started to record higher lows, and we see the resistance level around $35 as a key area that the market has not been able to break through so far.

This seems more like a period of accumulation. It can be called a bearish flag pattern, where we see a major downward trend from the peaks, then a period of consolidation before a potential decline.

But here are some positive aspects. Higher highs on higher lows in the Relative Strength Index (RSI) indicate positive price momentum. The MACD indicator, where the 12-day exponential moving average is above the 26-day exponential moving average, and also above zero, is a positive indicator.

We are also above the 20-day and 50-day moving averages , with the 200-day moving average serving as a support zone. We note that the resistance level is around $36, then the price drops to around $25.

This stock is currently fluctuating. We need more positive news to try and push it higher, and when it gains momentum, it rises strongly.

Well, Wolfspeed stock needs a potential catalyst to see its next upward move. The stock is still under slight pressure today. We fell by approximately 0.4%, but looking at the SMH index, we find that it also fell by approximately a similar percentage during the session.