SOX Semiconductor Index Daily Chart Positive Divergence

SOX semiconductor daily chart shows the negative divergence top in February (blue lines) that led to the downward channel of lower lows and lower highs thru the present time. Over the last month you can see the lower low in price, but, the indicators are all positively diverged with their lines sloping upwards for the same time frame, hence, a positive divergence pop was at the door step and pop, it's here. Thus some buoyancy is expected moving forward.

Note, however, that the light blue lines for the indicators during March-June were not agreeable to price moving back up, thus, after the upside is enjoyed for a little while, price should make a move back down and the downward channel should continue. The 20 MA at 401 will offer up resistance. The 200 MA is sloping up still yet which is always positive for any ticker. The 200 MA, horizontal support and the top rail of the channel all form a confluence at 420 which serves as an attractive target in the near term.

Projection is a move towards 415-420 then reassess at that time. Semi's have been whipped hard so the positive divergence now popped them back up to at the least give them a sidewasy move for abit so they can catch their breath. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.