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Shares of British semiconductor company IQE Plc (LON: IQE) are trading flat sofar in 2021 after pulling back from their yearly highs. However, the shares have significant upside potential since the shares are still within the ascending triangle shown below.

We identified the ascending triangle in early February when the shares had just broken above the resistance level. However, they have since fallen back into the pattern, which is still holding. A break below the pattern could invalidate the current setup.

IQE has recently achieved a major power and reliability milestone for its IQDN-VCSEL technology for advanced sensing applications at longer wavelengths on 150 mm gallium arsenide substrates.

Analysts recently raised their price target on the company, which supplies semiconductor wafers and materials to Apple Inc, based on the expected surge in shipments of 5G smartphones that use IQE’s chips.

Most analysts expect IQE’s revenue growth to slow down this year due to the strong numbers reported in 2019 and 2020.

IQE has strong fundamentals, which could boost its shares to post new highs and uphold the current bullish setup. However, a negative announcement could see the company’s shares break the triangle and head lower, invalidating our current thesis.

IQE share price.

Tradingview chart of IQE share price 11-03-2021

IQE shares are trading almost flat for the year, but the weekly chart above shows potential for further gains.

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