The share meets an important level. We suggest caution because this point could stop the bullish trend.

Teradyne manufactures and market test systems for the semiconductors industry. According to the most recent earnings release, the company suffered a significant fall in net income over the same period last year, $0.93 million for Q1 2014 against $6.59 million in Q1 2013. Moreover, all its businesses dropped in 2013, from where operations ran in Korea registered biggest losses.

Technically, the stock evolves in a bullish trend for the long term; however, the USD 20 resistance already stopped progressions and could imply further loses in prices. In consequence, the USD 18.84 seems a reachable target as indicator evinces an overbought situation for Teradyne.

The technical configuration and fundamentals let us foresee a consolidation phase, at least in the short term. The resistance playing its full role the target at USD 18.84 could be easily aimed. In case of further acceleration, the stop loss will be triggered above the USD 20.5.