Chips Remain Stuck In The Mud
Many of the leading semiconductor stocks continue to struggle to catch a bid higher. The important and highly followed Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) is trading lower by 0.12 cents to $44.45 a share. Short term traders should watch for intra-day support around the $32.20 and $32.90 levels. The daily chart price for the SMH is now trading well below the important 50 moving average. This chart position puts this important ETF in a vulnerable position on the charts. It is also important to note that the SMH is short term oversold and small bounces are always possible.
Some leading chip stocks that are declining lower today include ARM Holdings plc (ADR) (NASDAQ:ARMH), NVIDIA Corporation (NASDAQ:NVDA), and Marvell Technology Group Ltd. (NASDAQ:MRVL). All of these stocks mentioned here are nearing short term oversold conditions on the daily chart, therefore, small bounces are possible in the next few days.