Wednesday, March 12, 2008

Semiconductors break 50-day MA (again!)

Watching the Semiconductor Holders (SMH) with interest (over and above the long position I hold in them). Tuesday saw its second break of its 50-day MA over the past few weeks. The last one didn't hold so the question is will it do so now? Recent volume has been strong, suggesting there is more than retail trading going on here. I have redrawn a consolidation triangle, a break of which to the upside would confirm the 50-day MA crossover as bullish. If it can create some air to its 50-day MA it will have a good chance to mount a challenge of its 200-day MA once the inevitable back test appears.

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