Semtech receives AT&T certification for FX86E 5G RedCap modem: Can SMTC break above $185.18?

Semtech receives AT&T certification for FX86E 5G RedCap modem: Can SMTC break above $185.18?
Semtech stock drops 4.1% today

Semtech said its FX86E 5G RedCap modem is now certified on AT&T's network. The stock is down 4.1% on the day at $177.37.

Highlights

  • Semtech confirms its FX86E 5G RedCap modem is certified for use on AT&T's network with plug-and-play 5G and 4G connectivity.
  • Shares of Semtech are down 4.1% on the day at $177.37.
  • Of 58 analysts, 52 rate Semtech stock a buy and the median price target is $202.5, about 14.1% higher than current levels.

Semtech said its FX86E 5G RedCap modem has received certification to operate on the AT&T network. The modem enables plug-and-play connectivity across both 5G RedCap and 4G LTE networks. The company stated that this device removes the need for months of development time and additional certification costs.

Bullish structure holds as session range widens with RSI nearing overbought

The intraday range in the latest session widened well beyond the weekly average, between $176.05 and $190.64. Shares of Semtech continue to hold above their MA-20, MA-50, and MA-200, which maintains a bullish daily structure. The nearest resistance is the weekly high at $185.18. RSI now sits at 67.2, nearing overbought territory and suggesting the recent advance may be getting stretched.

Upside probability dominates as traders monitor resistance test

A close above $185.18 would indicate buyers are prepared to follow through on the recent move. During the last session, price moved sharply between $176.05 and $190.64. Although shares saw a sharp move lower over the past week without a sustained trend, upside probability is more than 80% over the next five trading days, while downside probability is less than 20%, with an expected trading range from $161.18 to $193.55. A drop below $150.32 would show the move is being faded. On the weekly chart the longer-term picture stays firmly constructive.

Previously it was reported that Semtech’s introduction of its advanced 224G solutions maintained a constructive long-term technical outlook supported by strong price structure. The latest AT&T certification for its 5G RedCap modem adds a new growth driver, and with shares holding above major moving averages, continued focus should remain on whether price can secure a decisive weekly close above $185.18 to confirm further upside momentum.

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