The Semis have been on a tear and has been the number one performing sector over the past two weeks.
As you can see, SMH broke out of a Symmetrical Triangle and soon after formed a Cup & Handle (C&H). Once again, it broke free of the C&H to the upside and appears to be moving in a parabolic manner.
Parabolic extensions can be persistent however, once they climax (peak) and momentum weakens, price action fails and tends to retrace a majority of the break out move. In this scenario, SMH break out point was $93 (12% move since Sept).
With earnings on the horizon, Bulls should look to protect profits. Bears, be warned, trying to pick the top of a parabolic move could be hazardous to your portfolio!
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Disclosure: The information provided above is for informational/entertainment purposes only. FlashPoint Trading is an educational company, not a RIA or registered broker-dealer, and does not recommend the purchase or sale of any security. Owners, their families and/or staff members may hold long, short, or options positions in the security mentioned above. Always consult with your financial advisor prior to purchasing, selling or shorting any security.
As you can see, SMH broke out of a Symmetrical Triangle and soon after formed a Cup & Handle (C&H). Once again, it broke free of the C&H to the upside and appears to be moving in a parabolic manner.
Parabolic extensions can be persistent however, once they climax (peak) and momentum weakens, price action fails and tends to retrace a majority of the break out move. In this scenario, SMH break out point was $93 (12% move since Sept).
With earnings on the horizon, Bulls should look to protect profits. Bears, be warned, trying to pick the top of a parabolic move could be hazardous to your portfolio!
If you like our analysis, please click like and follow us. Thanks!
Disclosure: The information provided above is for informational/entertainment purposes only. FlashPoint Trading is an educational company, not a RIA or registered broker-dealer, and does not recommend the purchase or sale of any security. Owners, their families and/or staff members may hold long, short, or options positions in the security mentioned above. Always consult with your financial advisor prior to purchasing, selling or shorting any security.
Comment:
Broke rising channel Nov 27, 2017. Nice drop. Shorts who are experienced with options trading may want to sell puts against position or take some profits in.
AlgoTrend Capital LLC