Semiconductors Will Rise Until They Hit This Technical Target
InTheMoneyStocks.com | Feb 20, 2018 03:09PM ET
The VanEck Vectors Semiconductor ETF (NYSE:SMH) lead the technology sector higher on Tuesday. The semi's have now retraced 75% of the down-move and investors are excitedly talking about new all-time highs. In the near-term, I do not expect that to happen. I have a calculated upside max move of $105.80. With the current price at $104.94, there is less than a dollar of upside left. This max move is calculated based on a technical extension move, time count, a former pivot high from late November 2017 and a gap fill. What technical traders have noticed is that when multiple major technical signals merge together in one price point area, the chance of a retrace top increases dramatically. This is what SMH is showing us. Stocks like NVIDIA (NASDAQ:NVDA), Micron (NASDAQ:MU) and others will stall out and start to decline once this target level is achieved. I will look to short or buy puts (posted live right here ).
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