Semiconductors short (SOXS) has been in a very narrow pinching channel for a while and has stayed remarkably precise for a leveraged ETF. Please watch for a buy signal when it breaks out (d'uh). Easy money as far as I'm concerned.
That market is absolutely littered with declining wedges (UGAZ, LABD, SOXS, TMF to name a few)!! I thought this was the tastiest and look like it will turn a corner early in trading and begin trading down. I hope everyone shorted gold miners and closed today because they're turning up tomorrow!
Large descending triangle emerging in semi-conductors (SOXS)/technology (TECS)/biotech (LABD) which is a very worrying development. I've shown my favourite one but please check out the others. News has emerged that Trump wants to blacklist Chinese businesses in response to the Hong Kong protests.
Ever since the march dump, the SPY has recovered while the semiconductor stocks have made significant gains. Some of them are also approaching all time highs.
The US ban on TSMC manufacturing for Huawei will be a major problem.
TSMC is the leading manufacturing for the most advanced chips and if china does not get access to it, it will cause a domino effect....
RSI Buy Signal
Stochastics Buy Signal
MACD Buy signal and Bullish Divergence
Also when using Fib the 61.8% lines up pretty good with the previous peak.
Lastly there has been increasing volume
Could the tip of this descending wedge (the mirror of what is currently showing in the S&P with its rising wedge also about to terminate) be like a balloon that was being kept forced down underwater suddenly being set free with nothing above to keep it down until it hits the surface up above, wherever that may be?
Or will Trump or the Fed somehow pop that...