Chip stocks have been running, and some traders may see signs of fatigue.
The first pattern on today’s chart of the Philadelphia Semiconductor Index is the higher high and higher low on May 27 compared with the previous session. The resulting outside day is a potentially bearish reversal pattern.
Second, Wilder’s Relative Strength Index (RSI) hit a 15-year high of 85.11 last month. It’s inched lower as SOX kept rising, which could be viewed as bearish divergence.
Third, the Average Directional Index hit 48 earlier this month. Such an elevated reading may reflect an extreme trend with risk of stalling. (It was the highest ADX value since the broader market crashed in late 2008.)
Next, SOX was 67 percent above its 200-day simple moving average (SMA) earlier this week. That was the biggest gap since the dotcom bubble peaked in early 2000.
Finally, chip earnings have surged as AI fuels demand. Given the deeper positives, some traders may see further gains over the long run. But they may also see potential for a tactical pause given some of the patterns noted above.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. Learn more here about TradingView’s Broker of the Year!
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart of the Philadelphia Semiconductor Index is the higher high and higher low on May 27 compared with the previous session. The resulting outside day is a potentially bearish reversal pattern.
Second, Wilder’s Relative Strength Index (RSI) hit a 15-year high of 85.11 last month. It’s inched lower as SOX kept rising, which could be viewed as bearish divergence.
Third, the Average Directional Index hit 48 earlier this month. Such an elevated reading may reflect an extreme trend with risk of stalling. (It was the highest ADX value since the broader market crashed in late 2008.)
Next, SOX was 67 percent above its 200-day simple moving average (SMA) earlier this week. That was the biggest gap since the dotcom bubble peaked in early 2000.
Finally, chip earnings have surged as AI fuels demand. Given the deeper positives, some traders may see further gains over the long run. But they may also see potential for a tactical pause given some of the patterns noted above.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. Learn more here about TradingView’s Broker of the Year!
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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免責事項
これらの情報および投稿は、TradingViewが提供または承認する金融、投資、取引、またはその他の種類の助言もしくは推奨であることを意図したものではなく、またこれらに該当するものでもありません。詳細は利用規約をご覧ください。