I can’t stop talking about semiconductors. Even when I’m not talking about them, I am thinking about them.
I am an optimist, and this sector gives me a reason to be positive.
I like it for the long term. Everything has chips built in and demand is at all-time highs. I think this sector could lead the way to higher highs.
Looking at the charts, the Vaneck Semiconductor ETF ticker SMH has recovered back above the 50-day simple moving average (SMA).
It is also positioned nicely to launch off of the volume shelf right where its at, between $151-$152.
Targeting the August high of $157.62 but first need to see it hold up above the 50-day SMA.
NVDA led the way Wednesday, outperforming and up over 2.5%. Closing just below $470 it is still a little ways away from $500 but getting closer.
If NVDA does pull back I’d like to see $455 show some support.
Meanwhile AMD is setting up for a potentially big move higher.
Breaking out of the falling wedge, it paused on Wednesday but is still well above it’s 50-day SMA and RSI is strong. MACD is also curled up nicely and going positive.
Targeting $111.82 first and if AMD can keep momentum going, $116.81 after that.
A name that is setting up to follow the same pattern as AMD is ON Semiconductor.
ON just broke out of its wedge but closed just below the 50-day SMA. I would like to see a strong push through this $95 level with a close firmly above the moving average before diving in.
That said, I really like this set up. Here’s the chart.
Short and sweet this morning with thoughts of more upside.
First, we have to see how markets digest the CPI data that comes out this morning. I was surprised at the resilience on Wednesday, maybe we see more strength.
I sure would welcome it.
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Semiconductors are the Future