Can Semiconductor Sector (SMH) Lead Electronic Vehicles Market Higher?

smh semiconductor sector etf leader electronic vehicles stocks tesla tsla news image

It is well known that supply chain disruptions in Taiwan and other leading countries which produce semi-chips for computers / Electric Vehicles have been struggling to keep up with demand.

Therefore, if the Electronic Vehicles space is looking to extend higher, it will need semiconductor supply companies to step up its game. 

Knowing how intertwined chips are to the Electronic Vehicles space, we can keep a close watch on VanEck Vectors Semiconductor ETF (SMH) to gauge underlying support in the Electronic Vehicles industry.

From a charting standpoint, the Semiconductors Sector ETF (SMH) has been hovering over its 50-day moving average and is not far from new all-time highs last seen in February. 

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If we expect SMH to pick up the pace, we can also watch for sentiment to improve in Electronic Vehicles stocks such as Tesla (TSLA), Nio (NIO), and Lucid Motors (CCIV).

Specifically, Tesla’s stock (TSLA) is the most interesting of the three as the others have begun to move up while TSLA has been consolidating around its 200-day moving average.

Additionally, if TSLA can grasp a consistent hold over its 200-day moving average and SMH heads towards or clears its high of $258.59, this could be a great setup in a company known to make large moves once it gets started. 

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Stock Market ETFs Analysis & Summary:

S&P 500 (SPY) 422.82 support to hold.

Russell 2000 (IWM) 234.53 high to clear.

Dow (DIA) 351 resistance. 342.43 support.

Nasdaq (QQQ) 338.19 resistance area.

KRE (Regional Banks) Doji day. 67.49 next support. 

SMH (Semiconductors) 245.25 support.  258.59 resistance.

IYT (Transportation) Watching to clear the 50-DMA at 268.85.

IBB (Biotechnology) 159.37 new support to hold.

XRT (Retail) Needs to hold over 96.27.

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.