Apr 10

SMH Semiconductor ETF Bullish

by Mike Paulenoff, Tue April 10th, 2007

Now that the Semiconductor HLDRs (AMEX: SMH) has held its 200 DMA (at the end of March) and has hurdled its 50 DMA at 34.21 today, in the aftermath of a messy sideways "EKG" pattern from the October high at 35.95 to the October low at 33.15, it is time to enter a long position for what I expect will be a new upleg that takes out 36.00 on the way to 37.50-38.00. The fact that SMH components TXN, AMAT, INTC, ADL and KLAC all have very promising chart patterns suggests strongly that the SMH should participate in a very strong advance. Only a decline that breaks 33.00 will destroy the emerging pattern.
Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!