TradeStation
Long

Channel Breakout in the Chips?

TVC:SOX   PHLX SEMICONDUCTOR SECTOR INDEX
The Philadelphia Semiconductor Index formed an interesting pattern this month as the market pulled back. It initially dove toward 2100, and then managed to hold that level even as the Nasdaq-100 and S&P 500 proceeded to make lower lows.

Not surprisingly, that relative strength led to more bullishness this week as SOX jumped above its 50-day simple moving average ( SMA ) on Monday. It’s also fought its way into the large bearish candle from September 3, while NDX is only back to its September 10 range and SPX remains around its September 16 close.

The key pattern we want to highlight today is the sideways channel in SOX between September 4-25 because we’re now seeing a breakout above that consolidation range. This may create the potential for chips to lead other tech stocks. We could even see an accelerated move if SOX retraces the fast price action from September 3.

TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.

Comments

Good idea. Thanks
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out