SOXX (Semiconductors ETF) Review
- John Nwatu MSTA CFTe
- Jun 6
- 2 min read
Weekly Chart
The SOXX (semiconductor) ETF chart has been in a bullish trend for some time now. The last rally started in October 2022 up until July 2024 it transitioned into a flag formation which could be considered a correction with an expectation for further upside on price. The price retraced 50% and bounced off previous support at around $145. This price area also coincides with the 250 week EMA line where buyers came back into the market and kept the uptrend from breaking.
If the projection for price to continue rallying proves to be correct there is an expectation the price could surge up to $430 and potentially up to $500 for the full wave up on the basis of hitting 1.618 and 2 in the Fibonacci extension measurements. The expected rally is also supported by the Money Index Flow which is increasing in line with the price indicating there is genuine volume driving it up. Additionally, the MCAD signal is in the positive indicating the correction may now be over.
As the flag channel is still in a downtrend may be best to wait for price to break out of this or closes above the last high of $242.30 for confirmation.
There is a possibility that this rally fails and price heads back down to create a new low. The expectation is that the overall trend will still be positive. See below alternative forecast.
Daily Chart
The daily chart follows the same sentiment as the weekly chart commentary. We can see an impulse is forming which is usually bullish and indicates after a brief correction further upside is to be anticipated. The plan will be to buy at $242.30 area with a stop loss at 148.30. With expected target of £430 and £500 one should expect a 2:1 and 2.8:1 RR ratio.
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