Don’t lose sight of these Semis! ($INTC, $MU, $UCTT) – March 9, 2021
SMH AMD INTC MU UCTT
This is Scott with your Chart of the Day. I want to take a look at some semiconductors. Now, if I start here with the SMH VanEck Vectors Semiconductor ETF ( NASDAQ: SMH ) you can see it’s, pretty much, in a short-term downtrend. It is under the 50-day moving average, under the 21-day, under the 8 exponential. So for me, this is something that is not really buyable. A lot of major semiconductors, like AMD ( NASDAQ: AMD ), have been, well, “neh” lately.
There are 3 semiconductors that I am keeping an eye on. It starts with Intel ( NASDAQ: INTC ). Intel ( NASDAQ: INTC ) is in kind of a little, possibly a little bit of a handle pattern here. You can see a little sideways base of consolidation, a little bit of a pullback under the 21-day, and then we got a slingshot move back close to its recent resistance level.
Now, the fact that this is close to the highs when the semiconductor ETF is close to the lows is notable, it shows some great retaliative strength. So I am setting an alert on Intel ( NASDAQ: INTC ) right around 63.50. I want to see a move-through 63.50 coming on volume.
Another great semiconductor stock is Micron Technology ( NASDAQ: MU ); this has just been on a major run. And the whole way it has been able to hold above its 50-day moving average. Today we got back above the 8 and 21-day exponential period moving averages and we have this little sideways shelf of consolidation.
Ideally, we are able to just consolidate for maybe another week or so and a nice floor around these moving averages. But we could get a move higher if the bounce in the market continues. So watch Micron ( NASDAQ: MU ), I have an alert right around $90.00. We want to get above and stay above 90.00 and do it on higher than average volume.
And finally, Ultra Clean Holdings ( NASDAQ: UCTT ). If I zoom out here you can pretty much follow the bouncing ball on Ultra Clean ( NASDAQ: UCTT ). And that is because it tends to give us these nice downward slopes and moves out of those slopes. A downward slope, move out. Downward slope, move out. And here we are, we have another one, well, this one is a little sloppy, but you get the idea. Downward sloping trendline, we want to get above and stay above and do it on volume.
Again, the fact that this is above 2 key swing moving averages, the 8 and the 21-day exponential shows some great relative strength versus some of the other semiconductor stocks. So these are 3 that I am watching and I think you should keep an eye on them too.
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