Analysis of SMH Chart (Daily Timeframe)

SMH Daily Chart Analysis

The VanEck Semiconductor ETF (SMH) is showing interesting technical patterns!

We're seeing the completion of Elliott Wave (3) with a potential corrective Wave (4) forming. This suggests we might see some consolidation or minor pullback before the next bullish wave.

The RSI is trending in a downward channel, reflecting decreasing momentum. Currently sitting at 43.91, it indicates a neutral to slightly bearish sentiment. It's essential to watch how the RSI behaves—whether it breaks below the channel or bounces back.

Support is around $240, while resistance lies near the $280 mark.

Stay tuned and trade wisely!

#Trading #Investing #TechnicalAnalysis #ElliottWave #RSI #SMH #Semiconductors

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Overview

The chart of VanEck Semiconductor ETF (SMH) shows a clear Elliott Wave pattern, with Wave (3) nearing completion and Wave (4) beginning to form. This is confirmed by the RSI, which is exhibiting a downward channel trend, indicating weakening momentum.

Key Points:

Elliott Wave Analysis:

Wave (3) appears to be completing its cycle, marked by a peak in price.
Wave (4) is forming, typically a corrective phase that may lead to further price consolidation or a minor pullback before the next upward movement.

RSI Trend:

The RSI is currently in a downward channel, trending lower from overbought levels.
This suggests decreasing buying momentum and potential further downside or consolidation in the near term.
The RSI level is around 44.69, indicating a neutral to slightly bearish sentiment. It’s crucial to watch if it breaks below the lower channel trendline or bounces back within the channel.

Support and Resistance:

Immediate support is around the $240 region, coinciding with previous resistance turned support and the lower trendline of Wave (4).
Resistance is near the previous high around $280, marking the peak of Wave (3).