A Drop In Israeli Based Autonomous Driving Chip Maker Mobileye May Be A Buying Opportunity

Attack On Israel

Please start out by reading the Morning Capsule for details.

Shares are falling because the company's headquarters are located in Israel.

Autonomous Driving

Mobileye Global Inc MBLY makes chips for autonomous driving vehicles.  Here are the key points:

• Its most important product line, EyeQ chips, are not manufactured in Israel.
• There is some negative impact as some of its employees are called for military duty.

Intel

MBLY is majority owned by Intel Corporation INTC.  Intel has more resources across the globe to contain any negative fallout.

Zones

The stock may trade in a wide range.

The buy zone is 🔒, preferably below 🔒.  Be sure to scale in small tranches.  Scaling in is a technique used by billionaires and hedge funds to learn more, read Trade Management Guidelines. MBLY is trading at $38.96 as of this writing and very volatile. To see the locked content, please click here to start a free trial.

Maximum recommended position size is 🔒 of full core position size but reduce it based on personal preference.

This is a medium term position.

The target zone is $66 – $69.

The stop zone is 🔒.  Those wanting a closer stop zone can consider 🔒.

Tesla

If you are going to take this trade, keep a close eye on Tesla Inc stock TSLA. Tesla stock will need to hold above $215 - $226 for this trade to work. Also keep a close eye on stocks of other semiconductor manufacturers such as NVIDIA Corp NVDA, Advanced Micro Devices, Inc. AMD, Arm Holdings PLC - ADR ARM, Qualcomm Inc QCOM, and Micron Technology Inc MU.

Caution

If you are going to enter this trade, carefully start with the Morning Capsule first. The trade will work only if the following occur:

• The conflict is limited to Gaza.
• The market mechanic of year end chase is to the upside.
• Long term interest rates do not rise.  

This content is for informational purposes only and is not intended to be investing advice.