SOX Update and Bullish Semiconductor Setups for the Week Ahead

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Many factors are at play here including a measured move on the symetrical triangle break which has yet to run its course. However, in the short-term we are bullish and the following semi stocks look well poisitioned to bounce.

ALTR looks well positioned to bounce from this support area. Friday it carved out a bullish hammer reversal pattern on relatively high volume.

AMD gapped up on very high volume on news that DELL will option their duo core processors beginning next year. In doing so it cleared both the 20 and 50 MAs on a closing basis. We have minor reistance at $36 and $38, but I wouldn't be surprised to see AMD retest $42.00 in the near-term.

LCRX has successfully tested its trendline and looks well positioned to bounce from here. Friday's bullish engulfing stick could foreshadow a move back up to the bearish gap resistance area in the short-term.


NVDA has successfully tested its trendline and looks well positioned to bounce from here. Friday's bullish harami stick could foreshadow a move back up to the $27-$28 area in the short-term.

N.B. I believe these are short-term potential bounces, the overall bias is still to the downside for both the SOX and the Nasdaq. Therefore, I recommend caution.