SOX Semiconductor Index Daily Chart Sideways Symmetrical Triangle Gaps

SOX semiconductor daily chart shows the sideways symmetrical triangle about to squeeze out a decision. Note how the red and green ADX lines are the same value, and also the sideways move in the indicators, all this verifying the sideways price move lately. The ADX black line is down at 10 which means there is no strong trend in place and that also agrees with the price languishing sideways.

Watch the RSI and stochastic 50% levels, both are only a smidge above. If the 50% levels fail that verifies a bearish move down in price. There is a gap left behind up at 470 that will need to be filled at some point in the future. The 425-435 gap below is big enough to drive a truck through, however, so that provides a target area for the near term. The red lines show the rising wedge, overbot conditions and negative divergence that created the spank down in February, just as was projected in that period. The green line at 412 shows sturdy horizontal support.

Moving forward, price is deciding which way to break over the next couple days. Price is under the 20 MA which is bearish; watch to see if the 20 MA falls under the 50 MA to verfiy an extended bearish move. At 440.8-440.9, where price sits now to start the week, at the lower rail of that sideways triangle, price will decide its fate. If price falls below this area today, then broad market selling will accelerate as well as the chips. If this 440.8-440.9 level and higher can be maintained, the broad market bulls will maintain control. Projection would be failure at this level and a move down to fill the large 425-435 gap. Then the chart can be reassessed to see if further down to test that 412 support is in order. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.