Chip Stocks Remain Weak
The semiconductor stocks remain weak this morning despite the major stock indexes trading positive this morning. The semiconductor stocks have struggled to catch a bid since early May 2011. This sector remains very weak and is now approaching the March 2011 lows.
The Semiconductor Holders Trust(NYSE:SMH) is trading lower by 0.17 cents to $32.84 a share. The SMH should have some short term intra-day support around the $32.40 level. This is a level where the daily chart is signaling support and should be solid in the short term.
Broadcom Corp.(NASDAQ:BRCM) is a leading semiconductor stock that has been declining lower since January 2011 when it traded as high as $47.39 a share. This morning, BRCM stock is trading lower by 0.60 cents to $32.51 a share. The stock remains weak on all time frames. Short term traders can watch for intra-day support around the $32.45, and $32.00 levels.
Texas Instruments Inc.(NYSE:TXN) is another leading semiconductor stock that is making a new low for 2011. This morning, the stock is trading lower by 0.42 cents to $31.73 a share. TXN is now trading below its daily chart 50, and 200 moving averages which put the stock in a confirmed downtrend. Traders can watch for intra-day support around the $31.60, and $31.00 levels.
Often the semiconductor sector will lead the Nasdaq Composite Index. Recently, the semiconductor stocks have lead the Nasdaq Composite lower. Since May 2, 2011 the Nasdaq Composite has declined lower by 8.2 percent.