Semiconductors ETF Nearing Critical Inflection Point
Chris Kimble | Aug 23, 2023 03:35PM ET
As readers know, we watch leadership sectors daily. And today is no different as we take yet another look at the Semiconductor ETF (NASDAQ:SMH)
Below is a daily chart of SMH showing the correction and subsequent rally.
We have two very important price areas to watch that could produce two very different outcomes.
The first price area of importance is double top resistance at (1). We can see that the prior decline started in from the same area, and we have yet to break out above (1).
If the price does break out, it would be super bullish.
The second area of importance is support at (2). This area has served as support and resistance (lower green and red arrows). A bearish message would be sent to the broader market should support fail to hold here.
Will we see a breakout at (1) or a breakdown at (2)? This could be decided in the coming weeks, and the outcome will have serious short-term implications for the broader market. Stay tuned.
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