Semiconductors and the Long-Term Trend

7 dni temuChip stocks have been climbing since early last year. Now, after a healthy pullback, some traders may look for the longer-term uptrend to continue.

The first pattern on today’s chart of the Philadelphia Semiconductor Index is the rising 200-day simple moving average (SMA). SOX bounced at this SMA in late 2023 and again last month. The most recent price action suggests it may remain support.

Second, August’s low occurred near April’s trough. The level was above any level seen in any previous year, which may suggest new support has been established in new record territory.

Third, stochastics are rebounding from an oversold condition. Other similar moments, followed upside in price, are marked on the lower study.

Next, some individual members of the space have potential patterns, aside from leader Nvidia NVDA .

Micron Technology MU could be forming a potential double bottom around $85. Applied Materials AMAT has a similar formation around $175. Interestingly, both levels are slightly above their respective prices at the end of last year.

Do these signal bullish reversals?





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