January 19, 2024

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Semiconductors

Please click here for a chart of semiconductor ETF SMH.

Note the following:

• Semiconductors are the lifeblood of the modern economy, just like oil is the lifeblood of the old economy.
• The chart shows that semiconductors have broken out again.
• The price pattern shown on the chart is a positive one.  In traditional technical analysis, this price pattern indicates semiconductors will go higher.
• RSI on the chart shows that semiconductors are now overbought.  This indicates that there may be a shallow pullback in the overall uptrend for the longer term.