Choose your trading platfom

Chart of the week – Further potential up move for US semiconductors after bullish breakout

semiconductor chips

Chart of the week – iShares PHLX Semiconductor ETF

Further potential up move for US semiconductors after bullish breakout

Medium-term technical analysis (1 to 3 months)

(click to enlarge chart)

Time-stamped: 7 Aug 2022 at 11:30 am SGT

Source: CMC Markets

  • iShares PHLX Semiconductor ETF (SOXX), a basket of major US-listed semiconductor stocks that consists of NVIDIA, Broadcom, Intel, and Advanced Micro Devices has rallied by +30% from its current 52-week low of 326.67 printed on 5 July 2022.
  • Recent price action on 3 August 2022 has staged a bullish breakout from its former major descending channel resistance in place since its 4 January 2022 all-time of 558.97.
  • Integrated technical analysis suggests the corrective rebound phase since the 5 July 2022 low remains intact; watch the 400.70 key medium-term pivotal support for a further potential up move towards the next resistances at 434.50 and 454.60 (200-day moving average, the upper boundary of the minor ascending channel from 5 July 2002 low & the 1.00 Fibonacci extension of the up move from 5 July 2022 low to 21 July 2022 high projected from 26 July 2022 low).
  • On the flip side, a break with a daily close below 400.70 negates the bullish tone for a deeper pull-back towards the next support zone of 380.00/361.00 before another potential leg of corrective rebound kickstarts.
  • Positive elements; price actions have pierced above and retested its 50-day moving before it rallied by 11% to print a recent high of 423.78 on 4 August 2022, current price actions have started to oscillate within a minor ascending channel, and the daily RSI oscillator has remained above its key corresponding support at the 54% level, it has not shaped any bearish divergence signal as well as has not reached its extreme overbought level of 82% which suggests that medium-term upside momentum remains intact.



Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.