Not Yet Time to Sell Semi’s

Keep Your Sox on it is not Summer yet

Semi’s took it on the chin Wednesday, but just how bad was the hit? Pulling back from the daily fray it seems not so bad. Take a look.

The monthly chart above shows an Inverse Head and Shoulders (in blue) with a price objective of at least 658. That was triggered back in December 2010, a long time ago. But it still stands and will continue to do so until it moves below the right shoulder at 305.79. Additionally it has been approaching a bigger Inverse Head & Shoulders neckline (purple) at 460. A move over that would create a higher price objective of 806. These are very bullish numbers from where it stands now. With the Relative Strength Index (RSI) continuing to trend higher since the right shoulder and a Moving Average Convergence Divergence (MACD) indicator that is also trending higher suggest it could come to fruition. Time to sell? Maybe if you are a day trader or have a short term horizon. Even then there is good support at the 412-417 area, right where it is now. For the position trader or investor there is no damage to speak of at this point.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Dragonfly Caps Blog