Semiconductor Holders
The Semiconductor HOLDRs
(
SMH |
Quote |
Chart |
News |
PowerRating) traded up almost
15% in the last few days. Quite a move, but you don’t have to drill too deep
to see that this move is nothing special when it comes to the trend. Looking
at the 60-minute chart below, there have been three rallies in the past two months
that have all been around 5 points.
The current rally is right around 3.5 points
from low to high. For this move to take on any significance for long traders,
(
SMH |
Quote |
Chart |
News |
PowerRating) will need to trade above the Fibonacci resistance zone from
29.02-30.84. If it rolls over at or around this zone, then the shorts will flood back in
and the trend will continue.
So, let’s keep these last couple of days in perspective. Now, if SMH can manage
to put together the strength to trade up through this zone, I’ll start considering long trades…but not until then.
Good night!