Shares of KLA Corp (KLAC) are hitting a major trend line of resistance. After a 60% surge from its 2020 lows, there is a massive semiconductor strong sell signal on KLA Corp. At a current price of $167.60, this stock is likely ready to collapse back to $147.00. This gives investors and swing traders a near-term trading opportunity. The semiconductor strong sell signal is a classic setup that smart technical traders are always looking for.
KLA Corp is just one of many semiconductor stocks that have surged higher off the March 2020 lows. Generally, the whole sector is a semiconductor strong sell and I am short the semi’s on that basis. As we enter earnings season, in my humble opinion, investors will watch these semiconductor strong sell signals play out to the downside.
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