As quite a few members within the trading room have recently stated remaining short the semiconductors in recent weeks after the official trade was stopped out, here are some potential near-term targets using SMH (VanEck Vectors Semiconductor ETF), both on the 60-minute time frame as well as the daily time frame. There are numerous ETF proxies for trading the semiconductors including SMH, XSD, SOXX & PSI (all 1x, non-leveraged), USD/SSG (2x long & short) & SOXL/SOXS (3x long & short), the latter (SOXL, & SOXX) of which track the same semiconductor index as SOXX although all of these ETF will move in relatively close synchronicity. As such, one could extrapolate price targets on any of the above ETFs with the levels on SMH below. When aligning price targets, support & resistance levels on charts of different ETFs that track the same sector, look for pivot points, gaps, unusually large candles, areas of consolidation, etc.. as typically, the charts will roughly mirror each other.
Looking at the daily chart (first) above, SMH appears poised to break below this minor uptrend line today which could be the catalyst for a move down to at least the 80 area & quite possible the 74 area in the coming weeks to months (with a reaction around 80 quite likely first, if so). Very similar to the 60-minute charts of QQQ recently posted, SMH broke down below a bear flag continuation pattern yesterday & is poised to gap down at the open today to continue to typical impulsive selling that follows a flag breakdown. My minimum target would be slightly above the 81.44 support level with a preferred swing target set just above the 80.00 level.