The following video provides technical analysis of the semiconductor sector, making the case for a significant bear market in the coming months as well as my top picks for individual semiconductor stocks, including short entry points & price targets. The charts of the following ETFs & stocks are covered in this order: SOXX, SMH, INTC, TSM, QCOM, TXN, AVGO, NVDA, AMAT, NXPI, MU, LRCX, MCHP, SWKS, XLNX, MXIM, MRVL, MSCC, IDTI & ASML.
The following notes & charts list the suggested entry, prices targets & stops for a trade in MU (Micro Technology Inc). Please log in or sign up for your free 3-week trial to view this post.
The following trade ideas have been removed from the Active Short Trades categories as they have either exceeded their previous suggested stops (or any reasonable stop, if none suggested) or the stock simply no longer looks to offer an attractive R/R at this time. Some of these trades may have already hit one or more profit targets while others did not. Most trade ideas on RSOTC are immediately removed from the Active Trades category upon reaching the final profit [...]
MU will trigger a short entry on a break below this bearish rising wedge pattern. With all broad market trend indicators currently bullish, more conventional traders may decide to wait for a solid close below the pattern before establishing a position while more aggressive traders might opt to initiate a full or partial position on any intraday break of the pattern while bringing the trade to a full position once/if MU prints a solid daily or weekly close below the pattern. I've added a support level (S1) around the 22.20 area where an initial reaction is likely although I would expect [...]
The following Short Trade Ideas have all exceeded their previously suggested stop criteria and will be moved from the Active Trades to the Completed Trades category: JASO, MU, STT, C, & FITB. There are several other trade ideas, both long and short, that have not exceeded their suggested stops but may be removed soon to make room for new trade ideas that offer better R/R profiles at this time. The AVL long trade also recently moved below its previously suggested stop level and will also be removed. (The AVL stopped out trade will also be covered under a separate post, assigned [...]
MU was recently posted as an objective short entry at top of wedge (15.26) on Sept 6th. Prices went on to overshoot the wedge but divergences persist. It is not uncommon to see prices with a wedge pattern, bullish or bearish, to overshoot the wedge just before reversing and breaking down in the expected direction of the pattern. However, we've also seen an unusually large number of textbook short patterns breakdown recently only to have prices move sharply high back within the pattern, i.e.- false breakdowns or bear-traps. Therefore, a suggested stop on a move or close above the Sept 12th [...]
I'll be posting the charts of most of the short trade ideas posted on Tuesday, many of which are still offering objective entries or add-ons. As such, the email notifications on some of those updates will be suppressed in order to reduce inbox clutter. A notification will be sent out later today listing all of the trade ideas that were updated. MU offers an objective short at the top of this bearish rising wedge pattern for aggressive traders and/or on a breakdown below the pattern for more conventional traders.