Thursday, August 20, 2015

SOX Semiconductors Daily Chart -21% Bear Market

Semiconductors have fallen into a bear market over the last couple days down in excess of -20% which is the 601.60 level. At 594.78, SOX is down -21% off the 752 top in early June. The black circle shows the death cross pattern.

The green lines for the indicators show positive divergence over the last 7 weeks that wants to bounce price but the very short term, the last few days, there is downside momo. Thus, price should bounce but then likely come back down to test near this current same level again and then bounce after that for a rally. The SOX weekly chart remains weak so lower prices are expected in the weeks ahead.

The pink box shows that the downward trend in price is very strong. The red dots show price extended to the downside under the moving average ribbon so a mean reversion higher would be anticipated. Thus, price should jog during the coming days and likely place a near-term bottom, then sideways with an upward bias for maybe a month or so but then SOX will likely weaken again as the weeks play out. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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