Semiconductors Rally Reaches Critical Resistance
Chris Kimble | Apr 11, 2023 06:10
One of the bull market leaders of the past 14 years is trading into critical resistance.
And what happens next could decide the next turn for tech stocks.
That’s right, we are talking about Semiconductors… again. We have routinely highlighted key moments across various time frames for the VanEck Semiconductor ETF (NASDAQ:SMH) because this sector has been a stalwart of the bull market.
Well, as you can see in the monthly chart above, $SMH has been trading in a bull market trend for over the past decade. And it has spent much of that time in a rising trend channel.
That said, price briefly broke out above the channel before falling back into the channel (after a bearish reversal). And it is now retesting the upper end of the trend channel at (1). This resistance area is also fortified by horizontal resistance from the prior’s bearish reversal pattern breakdown.
So let’s just say that this is a place of interest for bulls and bears. And it would be quite concerning for tech and the broader stock market if the Semiconductors started selling off form here. 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.