Semiconductors Rally Reaches Historic Dual-Price Breakout Level: What's Next?
Chris Kimble | Feb 28, 2024 02:06
Investors have been treated to one heck of a rally by the Semiconductor Sector (NASDAQ:SMH) with stocks like Nvidia (NASDAQ:NVDA) leading the sector and stock market higher.
But the semiconductor sector may be nearing a crossroads.
Is it breakout time or break time for the red-hot semiconductors sector?
Today’s long-term “monthly” chart of SMH highlights this very conundrum.
Currently, this market-leading sector is trading around 3 percent below important dual resistance at (1). This level represents the top of a long-term trading channel as well as the 461.8% Fibonacci extension level.
A breakout would be a very bullish development for the stock market, while a consolidation or pullback may signal “break time” for the broader market.
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