Semiconductors at long-term supportWhen looking at a weekly chart, it is easier to see if an asset is in a bullish or bearish trend.
Taking a look a the SOXX, we see we are at a potential place for a bounce.
I chose the 52 exponential-moving average because there are 52 weeks in a year, and it has worked very well in the past.
A close on a weekly basis below this level is the signal to get out. If we can hold though, it would be a strong bull case for a bottom.
SOXX trade ideas
Semiconductor short I'm forever blowing bubbles,
Pretty bubbles in the air,
They fly so high, nearly reach the sky,
Then like my dreams they fade and die.
Fortune's always hiding,
I've looked everywhere,
I'm forever blowing bubbles,
Pretty bubbles in the air.
shh JPOW
Disclaimer: post for information only; no advice or fks given
TA: Bear div, broken parabolic trend line
FA: Transitory
Caution: can stay irrational longer than sheeple can stay solvent
SOXX 1 year trendSemiconductors/chips continue to be an essential part of everything around the globe.
For a year, we have maintained an upward trend, which is being tested today.
There are clear outperformers in the industry, but it is clearly been working for all of them as a whole.
When we have touched the trend line in the past, we have had a 50 point gain, which has happened through 2 weeks approximately. That gives us a target of around $505.
Semiconductor sector (SOXX) seem ready to turn its trendSemiconductor sector seems ready for a trend change. Since the March low, the sector has ran up more than triple digit percentage. As much as the sector is damaged less than retail and hospitality, it is very cyclical sector and it does get affected by business cycle. Semi is the canary in a coal mine of the tech sector (XLK), so when this turns, it will be a headwind for the entire tech sector as a whole. When the tech breaks, the market breaks for its heavy weight on the indexes.
Recently broke the minor yellow up trend line and reversing right at the long term trend line since last spring.
Initial target is the bottom of the trading range. $404ish depending on when it hits it.
2nd target is the horizontal support right below the channel. $384.46
As how bullish the overall sentiment is in the market recently, once it turns, it will be pretty quick move downward. Potential long term targets are listed but SOXX will not going to fall double digit without if XLK and indexes are resilient.
Only the time will tell but it will be prudent and be cautious. Scaling down on aggressiveness won't be a bad idea and have some hedges.
Have a good trade everyone,
T.
SOXX 5smaNotice how the 5sma has been resistance for the SOXX for the past 12 trading days (red oval).
This tells us that short-term, SOXX has to break the 5sma to get out of its current down-trend.
The purple line is the 50sma, which is now also resistance, as we crossed below it, and is now touching the 5sma.
SOXX 30 min view SOX stronger than XLK and QQQ but formed daily chart divergence peak.
30 min chart sees RSI break down 50 together with HA bar showing bearish head.
Disclaimer, this is only for entertainment and education purposes and doesn't serve by any means as a buy or sell recommendation.
Personally I hold both long term long positions and occasionally short term short position, for disclosure purpose.