Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Semiconductors On Fire, Know This Resistance Level

ByNicholas Santiago
Published 01/18/2013, 12:17 AM
Updated 07/09/2023, 06:31 AM
NDX
-
IXIC
-
SWKS
-

This morning, the important and highly followed semiconductor sector is soaring sharply higher. Many traders and investors follow the semiconductors very closely because throughout the years they will signal a sign of strength for the technology stocks. Almost every tech gadget in the world has a semiconductor in it. Seasoned traders and investors know this and will usually ride the NASDAQ Composite higher until the major resistance level on the chip sector is reached.

One way to track the semiconductor industry group is to follow the Market Vectors Semiconductor ETF (NYSEARCA:SMH). This important ETF has surged higher since November 16, 2012 when it traded as low as $30.00 a share. Today, the SMH is trading higher by 0.65 cents to $34.40 a share. Traders should watch for daily chart resistance around the $35.40 level. This is an area where the SMH could see a pullback in the near term. Short term traders should watch for intra-day resistance around the $34.50, and $34.80 levels.

Some leading semiconductor stocks that are rallying higher today include KLA-Tencor Corporation (NASDAQ:KLAC), Broadcom Corporation (NASDAQ:BRCM), SanDisk Corporation (NASDAQ:SNDK), and Skyworks Solutions Inc (NASDAQ:SWKS). This sector looks to be trading in tandem with each other at this time, therefore when the SMH pulls back it is likely that these stocks will also come under selling pressure.

SMH

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.