From TradingView · · 1m
Bullish divergence spotted on semiconductor ETF
Technical analyst sees strong buy signal on SOXX, the semiconductor sector index fund.
In brief
Technical analyst sees strong buy signal on SOXX, the semiconductor sector index fund. A positive daily divergence on SOXX suggests a potential rally ahead, unless the next day closes lower. Originally reported by TradingView.
Bullish signal on semiconductor ETF
Analyst Supergalactic spotted a positive daily divergence on SOXX, the iShares semiconductor sector index fund. This is considered a strong bullish signal.
“This is a strong bullish signal.”
What could invalidate the signal
The bullish signal can be invalidated if the next trading day closes slightly lower. Otherwise, the signal remains intact.
“It can be invalidated if the next day will close a little lower.”
Rally expected if signal holds
If the signal isn't invalidated, SOXX is expected to rally. The fund likely needs to complete an abc pattern.
Understanding positive divergence
A positive divergence occurs when price makes lower lows but technical indicators show higher lows. This suggests weakening downward momentum.
Not financial advice
TradingView emphasizes this analysis doesn't constitute financial, investment, or trading advice. It's technical analysis only.
What to remember
A positive daily divergence on SOXX suggests a potential rally ahead, unless the next day closes lower.
