Morpheus Trading: Relative strength in semiconductor stocks enabled the sector to break out above range highs yesterday, just a few days after last week’s ugly, two-day washout on 10/8 and 10/9. The following chart of Direxion Daily Semiconductor Bull 3X (NYSEARCA:SOXL), a leveraged semiconductor ETF, details the shakeout:
The nasty shakeout to the 50-day moving average in $SOXL was followed by a sharp reversal and breakout above range highs yesterday.
In terms of the trend, the moving averages in $SOXL point to a strong uptrend, with the 20-day exponential moving average now above the 50-day moving average, and the 50-day moving average above the 200-day moving average.
All three averages are also trending higher (this moving average analysis can be done on $SMH with the same result), further confirming an uptrend is in place.
As such, we are stalking $SOXL for potential buy entry going into today’s session.
Since $SOXL is a 3x leveraged product, please note it is not an ETF we would use for an intermediate to long-term hold. However,for our intended purpose of catching a strong 3-6 week advance, it will do just fine.(...)Click here to continue reading the original ETFDailyNews.com article: Watching This Semiconductor ETF For A Potential Buy EntryYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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