Semiconductor Stocks Are Sending Out Warning Flags
The semiconductor sector is a very important group of stocks that traders should follow closely. Often the semiconductor stocks will lead most technology stocks higher and lower. Since December 19, 2011 the Semiconductor Holders ETF (NYSEARCA:SMH) has rallied higher by $2.47 a share. This morning, the SMH is trading higher by 0.72 cents to $31.15 a share. Traders must watch for very important daily chart resistance around the $32.00 area. Since October and November 2011 this has been an important resistance level for the SMH. Short term traders can watch for intra-day resistance on SMH around the $31.40 level.
Some leading semiconductor stocks that are trading higher this morning include Intel Corp (NASDAQ:INTC), Broadcom Corp (NASDAQ:BRCM), and Skyworks Solution Inc (NASDAQ:SWKS). All of these stocks could have a little more upside in the cards, however, they will often trade along with the SMH.