Will The Semiconductors Sector Lead The EV Market Higher?
Michele Schneider | Jun 13, 2021 05:12AM ET
It is well known that supply chain disruptions in Taiwan, and other leading countries which produce semi-chips for computers/Electric Vehicles, have been struggling to keep up with demand.
Therefore, if the EV space is looking to extend higher, it will need semiconductor supply companies to step up its game.
Knowing how intertwined chips are to the EV space, we can keep a close watch on VanEck Vectors Semiconductor ETF (NASDAQ:SMH) to gauge underlying support in the EV industry.
From a charting standpoint, SMH has been hovering over its 50-Day moving average and is not far from new all-time highs last seen in February.
If we expect SMH to pick up the pace, we can also watch for sentiment to improve in EV stocks such as Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), and Lucid Motors.
Specifically, TSLA is the most interesting of the three as the others have begun to move up while TSLA has been consolidating around its 200-DMA.
Additionally, if TSLA can grasp a consistent hold over its 200-DMA and SMH heads towards or clears its high of $258.59, this could be a great setup in a company known to make large moves once it gets started.
h2 ETF Summary/h2- S&P 500 (SPY) 422.82 support to hold.
- Russell 2000 (IWM) 234.53 high to clear.
- Dow (DIA) 351 resistance. 342.43 support.
- NASDAQ (QQQ) 338.19 resistance area.
- KRE (Regional Banks) Doji day. 67.49 next support.
- SMH (Semiconductors) 245.25 support. 258.59 resistance.
- IYT (Transportation) Watching to clear the 50-DMA at 268.85.
- IBB (Biotechnology) 159.37 new support to hold.
- XRT (Retail) Needs to hold over 96.27.
- Volatility Index (VXX) Needs to find support.
- Junk Bonds (JNK) 109.35 needs to hold as new support.
- XLU (Utilities) Confirmed bullish phase change over the 50-DMA at 65.72.
- SLV (Silver) 25.47 support.
- VBK (Small Cap Growth ETF) 278.02 support.
- UGA (US Gas Fund) Needs to hold over 34.68 area.
- TLT (iShares 20+ Year Treasuries) Inside day.
- USD (Dollar) 89.54 support. Resistance 90.75.
- MJ (Alternative Harvest ETF) Needs to hold 21.09.
- LIT (Lithium) Watching to hold 70.00.
- XOP (Oil and Gas Exploration) 95 support.
- DBA (Agriculture) Holding 18.94 the 10-DMA.
- GLD (Gold Trust) 175.83 pivotal area. 174.66 next low to hold.
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.