Semiconductors Attempting Breakout To All-Time Highs

Published 06/10/2020, 08:24 AM
Updated 07/09/2023, 06:31 AM
US500
-
SMH
-

Strong leadership is attempting to break out to new all-time highs. If it is successful, it sends a positive message to the broad markets!

The chart on the left compares the VanEck Vectors Semiconductor ETF (NYSE:SMH) to the S&P 500 over the past 12-years. Since the 2009 lows, the ratio has been moving up, which means the SMH has been stronger than the broader markets.

SMH Chart

The chart on the right reflects that SMH has remained inside of a bullish rising channel (1) over the past 11-years. SMH tested the bottom of the channel in March as support, and it held!

The rally off support has SMH testing its February highs near the top of its rising channel at (2).

If this strong leader succeeds in breaking out at (2), it continues to send a bullish message to the rest of the market!

Latest comments

Loading next article…
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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.