From the last post, The daily technical indicators appear to be turning upwards and the early part of the coming week is expected to show a bullish hand, that probably leads to the rest of the projections into September where it should meet the weekly 55EMA. Watch for it!
The window closed rather immediately after :|
The analysis projection totally did not happen for the week, and yesterday SOXL gapped down, after breaking below the daily 55EMA. The price action is enough to tell that there is a clear trend change, and the technical indicators support it. In addition, it appears that there is a triangle breakdown, and this projects a downside target of about 12. Immediate support is seen at 14.
Expect downside, watch the support lines and wait for it... again
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Just hit 11.97 and bounced to form a hammer... a possible bullish reversal? This itself is might be a lower low. Am also looking for a shorter term lower low.
Resistance at 14 needs to be overcome, and with that a closure of the gap (down).
Glad I sold up around 20 :). If the market continues to weaken with the S&P clearly rejecting the 200 moving day avg then I think this cracks lower. In which case I’ll load up! Great work
Auguraltrader
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Wow, that’s nice @Nickquick7 Yes, this is worth the wait…
Nickquick7
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@Auguraltrader markets been beating up semiconductors. What’s your thoughts here as this gets cheaper?
Auguraltrader
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Good day @Nickquick7, yes indeed, and I take it as a good thing. There is a short term view and a long(er) term view. Overall, my impression is that the semicon industry is in short supply... any perturbation (particularly in Taiwan) would jolt the markets. So that works for demand/price increase. Technically, this wedge breakout was good, but now the trend is truncated on very tough expectations of inflation controls going forward. The failed breakout is pulling back hard, but not yet a trend reversal IMHO. I would be quite keen to see what happens as SOXL hits about 12 (as technically projected).
Btw... the next 5-6 weeks are going to be a rather hair raising IMHO. I see it, but not as easy to explain why specifically. Just like a thunderstorm, you know it is when it is, but to describe the storm, it just is not as real.
Nickquick7
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@Auguraltrader yea it’s getting wild. Be careful around the news on NVDA / China.