The semiconductor holders SMH is about to touch its rising 200 MA and this will be an important area for us to watch out. If the support cannot hold, then semi stocks are in for some selling.
The chart above shows the daily chart of SMH. Yesterday it formed a bottoming tail pattern. This is an indication of slowing momentum though we are not out of the woods yet for the semis. It is however reaching the rising 200 MA which will be crucial for us to look at.
If the support from the 200 MA cannot hold, then there might be more selling in semi stocks.
The chart above shows the weekly chart of SMH. The sector is still in a nice weekly uptrend and the uptrend is still intact. Which is why, there is still a bias that the support in the daily chart will hold and help semis to bounce back higher. In the event that the support does not hold then the next area of support will be around the 85 area.
The chart above is the 60 min chart of SMH. As you can see, the SMH is still in a 60 min downtrend staying below its declining 50 MA. There was two bottoming tails that formed in the SMH which helped it to bounce up higher. Whether this is just a bounce in a 60 min downtrend or the start of a new uptrend remains to be seen.
We still need SMH to make a higher high and a higher low in the 60 min chart before we can consider it to be in an uptrend.
Aug 17, 18 05:07 AM
In this lesson we will take a look at the technical developments of OKA Corp's stock price and why it moved the way it did. We will also have a look at what might happen to OKA's stock price.
Aug 16, 18 07:28 AM
In this lesson, we will learn how and why BMY manage to bottom out and start a new uptrend.
Aug 14, 18 08:19 AM
In this lesson we will learn and examine why Pentamaster was able to recover all of its losses to start a new uptrend and achieve new highs.
Aug 13, 18 05:56 AM
The KLCI is currently at resistance territory after a nice big rally. I would consider a sideways trading a possible scenario at the moment.
Aug 13, 18 05:22 AM
In this lesson, we will learn how AAPL's 15 Min stock chart formation help to send the stock higher for 2-3 days to give traders a nice swing trading opportunity.