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.
Dec 03, 21 09:52 AM
Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.
Dec 03, 21 07:22 AM
Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off
Dec 03, 21 05:59 AM
How will the US stock market work in December? Will there be a rebound? Will the stock market continue to go higher?
Dec 01, 21 09:24 AM
Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.
Nov 30, 21 09:11 AM
Are the markets going to continue to move higher? Is it in an uptrend or downtrend and where are the support and resistance?