SOXL trade ideas
Semiconductors Descending Wedge and Inverse H&STwo price path predictions for next week given the current action and patterns I'm seeing on the chart
Blue arrows: Inverse H&S
Orange arrows: Descending Wedge
Semiconductors Still Weak - Video Analysis IncludedSemiconductors are still weak for several reasons though right here might be a decent accumulation zone. SOXL has been one of the strongest 3x ETF performers this year but we're seeing some serious topping action currently with may appear to be a head and shoulders top.
Here's this weeks video for SOXL: www.youtube.com
Semiconductors further to fall ?Bring back technical analysis . Too often I've been seeing people just posting a picture of the price action and then an arrow going up or down with the title "Long UVXY" or some garbage like that. Nobody gives two farts about whether or not you entered a position. Show me some fibonacci. Show me some technical divergences. Show me some diamond bottoms. Show me something. I don't care if we're on the same side of the trade, or on opposite sides, but at least justify your position?
If you don't have anything to add to the conversation, don't detract from everyone else's by humming.
#BringBackTechnicalAnalysis
Chart self explanatory: Wedges tend to retrace until their beginning which conveniently rests at the 23% fib zone. Elliot wave would have it that we should see some ABC retracement pattern and I believe that these points can best be predicted through the different fibonacci levels and consolidation zones along SOXL's price history.
Conclusion:
Short term - Bear
Medium term - Neutral
Long term - Neutral
$SOXL Irrational Exuberance SOXL is overbought on all time frames.
Bearish Case:
Coming to the end of the Long term, Medium term, and Short term elliot waves that I've drawn. (We may see a 9 wave on the short term instead of the traditional 5 waves).
At 227.6% Fib Resistance level.
Created a new unsustainable uptrend recently.
RSI divergence
Touching the top of new uptrend channel.
RSI has only reached 82 on the weekly 2 other instances, with a maximum of 84.
The video I have here outlines each of these situations
www.youtube.com
Conclusion:
Short term bearish
Medium term Neutral
Long term Bullish
Long on SOXlAnother nice move, uptrend in the daily chart. We do have a correction. The oversold signals the entry. Stop 5% below our entry, target in the last five high.
Semiconductors quick analysis on LETFI don't like doing TA on leveraged ETFs generally, but you can get a good idea of what's going on. Using SMH for semis would be better, if I were using fib ratios I'd definitely use an unleveraged product for charting.
Chart text repeated here:
potential reversal area, might be able to squeeze another 7% out of the current rally, would wait to go long on a 100/200DMA break.
Also could be a nice SOXS short if we break down out of the reversal area.
