Semiconductors ETF (SMH) Facing Stiff Test Of Resistance This Week

I sometimes get tired of reminding folks of the importance of technology stocks… and even more so, the Semiconductors Sector.

The Semiconductor Sector (SMH) lead the bull market higher for well over a decade… but this year they have lead the market lower, falling more than the S&P 500 and Nasdaq 100.

It’s fair to say that we pay particular attention to SMH, especially when it tests important support and resistance levels.

Today we feature a “weekly” chart of the Semiconductors ETF, highlighting a major test of price resistance. Not only is SMH testing its falling channel resistance, but also its falling 40-week moving average AND 38% Fibonacci retracement level!

Can/Will leadership breakout? Or breakdown?

For the last two weeks, SMH has been essentially flat. I humbly feel where it closes this week, could be VERY important.

(Click on image to enlarge)

More By This Author:

Crude Oil Looks To Be Sending Bearish Message This Month
Semiconductors Could Send Most Important Message Of The Year
Nasdaq Composite Reaches ‘Triple’ Inflection Point

Disclosure: Sign up for Chris's Kimble Charting Solutions' email alerts--click here.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.