This chart shows the long-term ratio between SOXL/SOXS. The intent is to detect reversals
between semi-conductors long and short. At the pivot high, the price of SOXL compared with
SOXS is at its highest. With a retreat from the pivot high, the price of SOXL is retreating while
SOXS is rising. Historically in 2022 as shown on the chart, pivots were with a ratio of 1,25 to
2,35 while the low pivots were with a ratio of 0.2 to 0.6.
At present SOXL has run up and over-extended as part of the AI breakout phenomenon. The
ratio of 1.8 is in the reversal zone where SOXL price is dropping while SOXS price begins
a significant rise. At present, the mass index is above 27 and awaiting a drop below 26.5.
The second indicator rate of change (ROC) detects spikes in the SOXL /SOXS ratio presumptive
for a pivot. The last time SOXS ran up over a long term ( with SOXL turning down)
was August to October when price increased from $33 to $88 representing a 266% rise.
I see this as a prior supertrend that could now be repeated again.
In conclusion, this idea leads me to take a swing long position is SOXS which I expect to
trend up over a period of a couple of months or more.
between semi-conductors long and short. At the pivot high, the price of SOXL compared with
SOXS is at its highest. With a retreat from the pivot high, the price of SOXL is retreating while
SOXS is rising. Historically in 2022 as shown on the chart, pivots were with a ratio of 1,25 to
2,35 while the low pivots were with a ratio of 0.2 to 0.6.
At present SOXL has run up and over-extended as part of the AI breakout phenomenon. The
ratio of 1.8 is in the reversal zone where SOXL price is dropping while SOXS price begins
a significant rise. At present, the mass index is above 27 and awaiting a drop below 26.5.
The second indicator rate of change (ROC) detects spikes in the SOXL /SOXS ratio presumptive
for a pivot. The last time SOXS ran up over a long term ( with SOXL turning down)
was August to October when price increased from $33 to $88 representing a 266% rise.
I see this as a prior supertrend that could now be repeated again.
In conclusion, this idea leads me to take a swing long position is SOXS which I expect to
trend up over a period of a couple of months or more.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.