Arm slid for six weeks, but some traders may think it’s turning around.

The first pattern on today’s chart is the series of lower highs since June 22. The chip designer closed above that falling trendline yesterday, which could suggest its downtrend has ended.

Second, ARM had a weekly close of $234.81 on Friday, April 24. It hit resistance at that level in early May before breaking out to new highs. Prices bounced after probing that zone last week and this week, which could mean old resistance has become new support.

Third, prices have held the rising 100-day simple moving average. That could be consistent with a longer-term uptrend.

Fourth, Wilder’s Relative Strength Index (RSI) is turning higher.

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