Semiconductors On Fire, Know This Resistance Level
This morning, the important and highly followed semiconductor sector is soaring sharply higher. Many traders and investors follow the semiconductors very closely because throughout the years they will signal a sign of strength for the technology stocks. Almost every tech gadget in the world has a semiconductor in it. Seasoned traders and investors know this and will usually ride the NASDAQ Composite higher until the major resistance level on the chip sector is reached.
One way to track the semiconductor industry group is to follow the Market Vectors Semiconductor ETF (NYSEARCA:SMH). This important ETF has surged higher since November 16, 2012 when it traded as low as $30.00 a share. Today, the SMH is trading higher by 0.65 cents to $34.40 a share. Traders should watch for daily chart resistance around the $35.40 level. This is an area where the SMH could see a pullback in the near term. Short term traders should watch for intra-day resistance around the $34.50, and $34.80 levels.
Some leading semiconductor stocks that are rallying higher today include KLA-Tencor Corporation (NASDAQ: KLAC), Broadcom Corporation (NASDAQ: BRCM), SanDisk Corporation (NASDAQ: SNDK), and Skyworks Solutions Inc (NASDAQ: SWKS). This sector looks to be trading in tandem with each other at this time, therefore when the SMH pulls back it is is likely that these stocks will also come under selling pressure.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.