Semiconductors Attempting Bullish Cup and Handle Breakout
2023.12.14 12:00
As I often point out, technology stocks have been the leader of bull markets since 2009. And it’s always a good idea to keep a good eye on leadership.
Within the technology sector, the Semiconductors are an area that is often out-performing. Today, we highlight why active investors should be watching the Semis.
Today’s chart offers a long-term “monthly” view of the VanEck Semiconductor ETF (NASDAQ:).
A few things come to mind. First, the up-trend from left to right since 2009 sticks out. Second, we’ve had a sharp decline and rally over the past two years or so. Third, this price action has created a bullish cup and handle on SMH right at the 361% Fibonacci extension level. And it’s currently attempting to break out of this bullish price pattern.
It’s still early in the month, so we must be patient to see how SMH closes. If it closes at or above current levels, it may be in the process of an epic breakout. Stay tuned.
