The Philadelphia Semiconductor Index has been skidding lower, and some traders may think it’s broken support.
The first pattern on today’s chart is last April's low of 4288. SOX bounced at that level last August and on March 11. But the index slid below it last week and this week peaked near the same zone. Has old support become new resistance?
Second, the 8-day exponential moving average (EMA) is under the 21-day EMA. That may reflect a bearish short-term trend.
Wednesday’s high was near the 21-day EMA. The index stalled at that line and quickly fell back below its 8-day EMA.
Next, the recent high was near a 50 percent retracement of the selloff that began in late January. That may also confirm its downward trend.
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The first pattern on today’s chart is last April's low of 4288. SOX bounced at that level last August and on March 11. But the index slid below it last week and this week peaked near the same zone. Has old support become new resistance?
Second, the 8-day exponential moving average (EMA) is under the 21-day EMA. That may reflect a bearish short-term trend.
Wednesday’s high was near the 21-day EMA. The index stalled at that line and quickly fell back below its 8-day EMA.
Next, the recent high was near a 50 percent retracement of the selloff that began in late January. That may also confirm its downward trend.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.