January 5, 2010
Shares of Semiconductor HOLDRS (NYSE: SMH) have pushed above a strong resistance level in the first day of trading for 2010.
On Monday, January 4, the first day of trading this year, Semiconductor HOLDRS gapped open and closed above its 50% retracement level, at $27.93, for the entire 2008-2009 bear market decline.
This level was reached two weeks ago and even though the stock market had a Christmas week rally, Semiconductor HOLDRS did not manage to surpass it.
But today’s breakout forecasts continued new highs and Semiconductor HOLDRS should now reach the 61.8% retracement level up at $31.11 in coming weeks. This is 9.5% above Monday’s close.
Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in Semiconductor HOLDRS.