The whole Semiconductor sector is flashing a hard sell signal. This comes from Friday’s topping tail that coincided with a major double top on the semiconductor ETF SMH. The SMH has rallied from a low in March of $96.00 to its high Friday of $155.00. To have a topping tail form with such a beautiful extended chart is rare and a very strong sell. Add into that the double top and investors and swing traders have the makings of a beautiful short trade.
Look for the downside to be swift in the next few weeks. The first target on the SMH is $139.00 and the second target is $123.50.
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