Potential Reversal Ahead for Semiconductors HOLDRS ETF (NYSE: SMH) Says Market Timer Frank Kollar
August 5, 2009 (FinancialWire) (By Frank Kollar)
Shares for the Semiconductors HOLDRS ETF (NYSE: SMH) reached the 50% retracement resistance level of their May 2008 to November 2008 decline three weeks ago.
After bullishly surpassing this level, at $23.96, Semiconductors continued higher and are now approaching a critical resistance level at $26.17.
$26.17 is the 62.8% retracement level and many traders use this as a do-or-die level in trading. If it holds, traders will sell and push prices lower. If it is decisively surpassed, they will jump on the bandwagon and buy.
Support is at $20.50 if Semiconductors sells off. If it closes above $26.17, Semiconductors could reach the August 2008 bear market rally highs at $31.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Semiconductors HOLDRS.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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