SMH: Not Smart to Long Semiconductor Index Right Now
It is not a smart decision to open long positions in the semiconductor sector right now (TSM, NVDA, ASML, INTC, AAMT, AMD... etc).
As the chart show, the overall performance on SMH is still on the downside trend, blocked by the resistance line on the necklace of the head-shoulder pattern.
But it doesn't mean that it is time to short the semiconductor sector, it is better to stay neutral and see if we have the chance to buy the cheap chip in around 200 USD.
If the market wouldn't give us the chance to buy in deep, then we can try to create the new positions again when SMH breaks through the resistance and goes with a new uptrend.
As the chart show, the overall performance on SMH is still on the downside trend, blocked by the resistance line on the necklace of the head-shoulder pattern.
But it doesn't mean that it is time to short the semiconductor sector, it is better to stay neutral and see if we have the chance to buy the cheap chip in around 200 USD.
If the market wouldn't give us the chance to buy in deep, then we can try to create the new positions again when SMH breaks through the resistance and goes with a new uptrend.