Semiconductors On Fire, Know This Resistance Level

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 view 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 is likely that these stocks will also come under selling pressure.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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