ON Semiconductor: Traders Look for a Bottom

New York, July 17th (TradersHuddle.com) - Shares of ON Semiconductor Corporation (NASDAQ:ONNN) ended the trading session lower by $0.12 or -1.76% from its previous close. ON Semiconductor's price action in the session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control, forming a trend reversal.

ON Semiconductor Corporation (NASDAQ:ONNN) supplies analog, standard logic, and discrete semiconductors for data and power management. The Company's products include integrated circuits, and analog ICs. ON also offers discrete semiconductors in a variety of surface mount and standard packages.

ON Semiconductor's stock has been trading in a well defined range with calculated support at $6.30 and resistance at $7.23. This range can be used by traders to plan their next moves.

Traders wanting to establish a position in ON Semiconductor or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

The Hammer is an important candlestick pattern, as it can mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of ON Semiconductor, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration:

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