SOXX: Technical Analysis And Outlook For Semiconductors

Jack Bowman
5.61K Followers

Summary

  • Chip stocks have been performing well in the market for the past decade, attracting investors.
  • I discuss several technical indicators that I am watching to evaluate taking a position in iShares Semiconductor ETF.
  • SOXX presents favorable momentum and oscillating indicators but may possess too much volatility.
  • I am taking a position in the Fund based on these bullish indicators but urge caution from investors who may not be able to stomach the volatility.
  • I highlight some threats to the technical thesis that include a divergence from trends, reversal of momentum, and a high RSI showing buyers near exhaustion.

Futuristic central processor unit. Powerful Quantum CPU on PCB motherboard with data transfers.

da-kuk

Introduction

"Chip stocks," or companies that produce semiconductors and computer hardware, are very hot on Wall Street and have been for the last decade with seemingly no stopping in sight.

It's no wonder then that the iShares Semiconductor ETF (

This article was written by

5.61K Followers
I am obsessed with macroeconomics and markets. Writer, registered investment advisor, economics educator, and commentator from Southern California.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SOXX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About SOXX ETF

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Compare to Peers

More on SOXX

Related Stocks

SymbolLast Price% Chg
SOXX
--