Semiconductors Could Be Rolling Over at Key Fibonacci Level
Chris Kimble | Apr 20, 2024 03:11
We often talk about leadership. Stocks that are leading the market higher. Sectors that are leading the market higher. Indices that are leading the market higher.
Why?
Because it pays to be invested in leadership when the market is on the way up. And one can avoid losses if they watch leadership when the market pauses or pulls back.
Today, we look at a “weekly” chart of another stock market leader: The Semiconductors Sector (SMH). And blend in some seasonality with the technical setup.
As you can see, the VanEck Semiconductor ETF (NASDAQ:SMH) bottomed the first day of Spring 2020 (good time to buy) and peaked the first day of winter 2021 (good time to sell). This year it looks like the first day of Spring may have been a good time to sell.
As you can see, the Semiconductors ETF (SMH) appears to be rolling over. But it’s also important to note that SMH may be rolling over from its 161% Fibonacci extension level.
Combined with the seasonal warning, this is a bad place for leadership to be rolling over. Stay tuned.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.