CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Key US Semiconductor Stocks Hovering Below Resistances Ahead of Trade Talk Conclusion

Article By: ,  Financial Analyst

Micron Technology (MU)



click to enlarge charts

Key Levels (1 to 3 weeks)

Intermediate resistance: 45.90

Pivot (key resistance): 48.50

Supports: 41.70 (trigger) & 35.90

Next resistance: 52.50/53.30

Directional Bias (1 to 3 weeks)

Key medium-term pivotal resistance will be at 48.50 and a break below 41.70 reinforces a further potential push down within a medium-term ascending range in place since 26 Dec 2018 low to target the next significant medium-term support at 35.90.

On the other hand, a daily close above 48.50 invalidates the bearish scenario for a squeeze up towards the 52.50/53.30 zone (the upper boundary of the medium-term ascending range & the former major ascending support from 18 May 2016 low).

Key elements

  • The 48.50 key medium-term resistance is defined by the upper limit of the gapped down formed on 27 Sep 2019 & the 61.8% Fibonacci retracement on the on-going slide from 11 Sep high to 02 Oct 2019 low.
  • The next 35.90 significant medium-term support is defined by the lower boundary of the ascending range configuration from 26 Dec 2018 low and 76.4% Fibonacci retracement of the prior push up from 17 Jun low to 11 Sep 2019 high.
  • Relative strength analysis from the ratio charts of MU against the market (S&P 500) and sector grouping (Semiconductor) suggests underperformance of MU.

Qualcomm Inc (QCOM)



click to enlarge charts

Key Levels (1 to 3 weeks)

Intermediate resistance: 76.27

Pivot (key resistance): 80.76

Supports: 69.50 (trigger), 65.20 & 58.00

Next resistance: 90.34/91.20

Directional Bias (1 to 3 weeks)

Key medium-term pivotal resistance will be at 80.76 and a break below 69.50 reinforces a potential push down towards the lower limit of the long-term secular ascending range configuration in place since Jun 2002 towards the significant medium-term supports of 65.20 and 58.00.

On the other hand, a daily close above 80.76 sees a squeeze up to retest 02 May 2019 swing high area of 90.34/91.20 (also the upper limit of the long-term secular ascending range configuration).

Key elements

  • Yesterday’s rally of 0.83% seen in QCOM has managed to fill partially the intermediate gapped down resistance of 80.76.
  • Relative strength analysis from the ratio chart of QCOM against its sector grouping (Semiconductor) suggests QCOM still underperforming against the Semiconductor sector,
  • The 58.00 key medium-term support is defined by the 76.4% Fibonacci retracement of the previous 5-month up move from 31 Jan low to 02 May 2019 high and the congestion area from 02 Jan/08 Apr 2019.

Charts are from eSignal 


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