Technical Analysis of Semiconductors

JC Parets
July 12, 2021

Technical Analysis is an art. It's not an exact science.

Sure, we use a lot of computers and math as inputs to help piece together the overall puzzle. But it's the interpretation of all that data that represents the art form.

That's how I see it anyway.

And so we always like argue both sides and see which one has the highest probability of occurring.

How else can one properly have an unbiased view?

So here's one look at the Semiconductor Index:

These Fibonacci extension levels are as clean as they come:

This view above suggests that if we're above around 3200, we need to err on the long side of Semi's right?

And then there is also this take. Momentum waning, potential whipsaws and a messy market at best:

Which is it?

A sum of the parts analysis is probably a good idea.

Here are a bunch of the biggest components of the Semiconductor Indexes.

These are still uptrends.

 

The trend is your friend right?

I think the levels are and have been defined.

If the Nasdaq is above those Q1 highs, you can't be short, even if short positions in other sectors are working.

Of all the Semi's, I think Broadcom $AVGO stands out as one of the stronger ones. I particularly like the risk vs reward here. If $AVGO is above 470, I like it long with a target of 590.

Do you agree?

You got a better risk vs reward in that group?

Fire it over!

JC

 

Filed Under: