Semiconductor Index Breaking Out Above 21-Year Fibonacci Level
Chris Kimble | Nov 08, 2021 12:37PM ET
Technology investors hardly remember the September pullback… because it was gone in a flash.
Tech stocks have risen sharply with several big names and sectors breaking out to new highs. Today we shine the spotlight on another big winner of late (Semiconductors) and why this sector may have more room to run.
Looking at the “monthly” chart of the popular Semiconductor Index (SOX), we can see the strength of the SOX over the past several years. And when applying Fibonacci analysis, we can see the important breakout above the 2000 highs and rally up to the 261.8% Fibonacci extension level. This level has been resistance for the past several months—until now.
This month, the Semiconductor Index is attempting a clean breakout above this 21-year Fibonacci extension level. This is very bullish, but the month is young so this bears watching.
Get The News You Want
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.