Channel Support vs Breakdown
Analyst's reasoning:The SMH pulled back to the daily 20 SMA and is holding above 578-580. This is a bullish structure that could lead to a V-shaped recovery back to the 614-620 supply zone.
Analyst's reasoning:SMH bounced fastest among indices and tested the top of Friday's red candle. A close above 607 would confirm a near-term reversal, potentially leading to a retest of all-time highs.
Analyst's reasoning:SMH has pushed back into the prior trading channel after a failed breakout, with the prior gap/price-action now acting as resistance. The next strong support is identified at 526.20, making this a key bear trigger level for the ETF.
Analyst's reasoning:The speaker frames steep and deep moves as leaving too many “bodies behind it,” making the upside climb harder. With that kind of washout, reaction trades need confirmation instead of being treated as automatic rebounds.
Analyst's reasoning:SMH continues to reject the daily 20 MA and remains below the major rejection point. The channel is trapping price between demand and supply with no clear breakout.
Analyst's reasoning:SMH closed below a key incline trend line for two consecutive days, and the weekly timeframe shows a large topping tail. The only bullish negation is a weekly close above 642, but near-term pressure points lower.
Analyst's reasoning:The SMH has tested the inclining trend line multiple times, each time failing to break down. The increasing hits suggest a weakening support, with a 60% chance of a breakdown on the next touch. Bulls should avoid price returning near $62,459.
- 6/11BEAR
- 6/8BULL
- 6/8BULL
- 6/10BEAR