Semiconductor sector (SOXX) seem ready to turn its trend
Semiconductor sector seems ready for a trend change. Since the March low, the sector has ran up more than triple digit percentage. As much as the sector is damaged less than retail and hospitality, it is very cyclical sector and it does get affected by business cycle. Semi is the canary in a coal mine of the tech sector (XLK), so when this turns, it will be a headwind for the entire tech sector as a whole. When the tech breaks, the market breaks for its heavy weight on the indexes.
Recently broke the minor yellow up trend line and reversing right at the long term trend line since last spring.
Initial target is the bottom of the trading range. $404ish depending on when it hits it.
2nd target is the horizontal support right below the channel. $384.46
As how bullish the overall sentiment is in the market recently, once it turns, it will be pretty quick move downward. Potential long term targets are listed but SOXX will not going to fall double digit without if XLK and indexes are resilient.
Only the time will tell but it will be prudent and be cautious. Scaling down on aggressiveness won't be a bad idea and have some hedges.
Have a good trade everyone,
T.
Recently broke the minor yellow up trend line and reversing right at the long term trend line since last spring.
Initial target is the bottom of the trading range. $404ish depending on when it hits it.
2nd target is the horizontal support right below the channel. $384.46
As how bullish the overall sentiment is in the market recently, once it turns, it will be pretty quick move downward. Potential long term targets are listed but SOXX will not going to fall double digit without if XLK and indexes are resilient.
Only the time will tell but it will be prudent and be cautious. Scaling down on aggressiveness won't be a bad idea and have some hedges.
Have a good trade everyone,
T.