A complete Semiconductor sector analysis that includes 28 annotated charts. Included are the key levels, trade entries and target prices. Timely commentary will keep you on the right side of the trade.
The semiconductor group is a sector our trading tribe has been focused on for a while. In mid to late September, many names began breaking their weekly uptrend lines from the 2016 lows. We correctly positioned ourselves to take advantage of the dramatic down moves. Now, after a sharp counter-trend bounce, most of the names find their price in the teeth of both overhead resistance, key Fib retracement levels, and declining ema’s as they back-test broken support.
To my eye, this looks like an area where a reversal takes place. Except for a precious 2 or 3 names, the charts look bearish. In my opinion there are many set ups which offer the trader low risk shorting opportunities. This is, an objective price entry where there is a clear price level to place a stop.
The broad markets are still in flux, but historically speaking, semi’s often lead tech to both the upside and downside. Currently the sector is underperforming both SPY and XLK. Bulls want to see the bounce continue, but if semi’s take a leg lower, I would expect the broader tech space to follow.
Because of the number of charts and for your own convenience, a copy of the Semiconductor Sector Analysis can be downloaded from DropBox with this link.
Download the Semiconductor Sector Analysis HERE
30 min Companion Video can be viewed HERE
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