Pro Charts: Stocks & ETFs

Semiconductor ETF (SMH) Likely Topped Out Per Technical Analysis

Updated: May 13, 2024 | Published: May 11, 2024
Verified Investing
By Verified Investing
Semiconductor ETF (SMH) Likely Topped Out Per Technical Analysis

The semiconductor ETF (SMH) slammed into a major technical resistance level. This is based off a hidden trend line retrace. This trend line was support until price crashed through it, now price has retraced to that same line, which is resistance. In addition, the sharp bounce in the semiconductor ETF (SMH) retraced a perfect .618 Fibonacci level (from the all-time high to the recent lows).

This pushes probability to the downside for stocks like Nvidia (NVDA), Advanced Micro Devices (AMD) and Super Micro Computer (SMCI) and others in the coming weeks.

Based on a lower high, technical analysis has traders and investors watching to see if the sell off (likely coming) takes out the recent lows. If it does, a major trend change will have taken place with lower highs and lower lows.

Verified Investing is here to give investors the information mainstream media avoids. The goal is to be unbiased, purely data driven and showcase technical analysis. Technical analysis is about understanding human behavior, showcased through charts and putting the probabilities in your favor.