There is a strong investor bear case for semiconductor stock KLA Corp (KLAC). What does this mean? It means that multiple metrics are pointing to a significant downside in the stock in the coming weeks and months. Stock traders and investors should pay close attention and note the below.

The investor bear case starts with its relative performance to not only the stock market but the whole semiconductor sector. The stock market has had an epic run of nearly 20% since October 2019. However, KLA Corp is lower than it was in October 2019. While some may think this is a sector underperformance, it is not. The semiconductor sector is also up 20% since the October 2019 period. This puts the underperformance squarely on the back of KLA Corp and signals something more sinister coming in the stock price.

The stock is holding onto a major trend line at $165.00. When this breaks, a cascade of selling will kick-off taking the stock to a target price of $144.00. Investors and stock traders should be selling the name and even shorting it once it breaks the key $165.00 level.

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