SMHs Getting Interesting, But Watch Out For This Potential Air Pocket
She sells sea shells
By the sea shore
She also sees symmetry
In the Semi holders!
Say that ten times real fast.
 Anyway, check out the
Semiconductor daily chart
(
SMH |
Quote |
Chart |
News |
PowerRating) below. Since Dec. 2, SMH has
fallen 8 points from high to low. Coincidentally, the decline that ended on Oct.
8 was also 8 points. This kind of symmetry usually leads to at least a
short-term reversal. In this case, a possible reversal to the upside.
This symmetry is
occurring within a Fibonacci price support zone from 22.54-23.24. If SMH falls
below 22.54, we will hit an Air Pocket and likely fall between 20.00-21.00 quite
quickly.
For now, I’m focused
on looking for the trigger to be long SMH. Again, that’s only if the current
support zone holds.
*Those who followed the Krispy Kreme short setup
a couple of weeks ago in this column have been
rewarded nicely. From 40 to 33. I’ve taken half of my position off at this point
and trail.