Two Reasons The Semis May Bounce Here

  • September 29, 2003
  • Derrick Hobbs

I have
to keep it short tonight but the charts speak for themselves.

  1. Semi Index (SOX) has hit
    support in pattern like fashion completing a Symmetrical Two Step Pattern
    today and beginning a move up. There is also a little Triple Crown Zone
    imbedded in here.

  2. The previous decline in this
    uptrend in the SOX was 10% and this decline is now at 10%. I wonder if the
    result of the previous decline will play out here….trampoline effect to the
    upside.


image src=”https://tradingmarkets.com/media/2003/Derrik/dh092903-01.gif” width=”577″ height=”666″ />

3. Check out almost any semi
stock and you see similar patterns. Below is one of my favorites in Zoran
(
ZRAN |
Quote |
Chart |
News |
PowerRating)).
It has many items I look for in a trade:

* Bullish Gartley
complete

* Strong Fib
support zone

* Previous decline
lasted 41 days from high to low. This decline is at 41 days.


image src=”https://tradingmarkets.com/media/2003/Derrik/dh092903-02.gif” width=”578″ height=”661″ />

Bottom
line: I would not be surprised to see semis bounce for a few days for
a nice multi day tradable rally.

Have a great night.


Derrik Hobbs