Will Back-to-Back Bearish Reversals Take Down Semiconductor Sector?

Chris Kimble
semiconductors sector etf smh bearish reversal patterns stock market correction chart february 27

$SMH – Semiconductors Sector ETF “monthly” Chart

Earlier this week, I warned about a bearish gravestone doji pattern on the Dow Jones Industrial Average “monthly” chart.

Today, I am sharing something similar on the $SMH Semiconductors Sector ETF (SMH)… and this “monthly” chart may also have bearish implications.

The Semiconductors Sector (SMH) has remained in a rising bullish channel for the past 10 years marked by each (1).

Over the past year, however, SMH has formed a shorter-term bearish rising wedge. And during the first two months of the new year, SMH has kissed the underside of these rising channels at (2) only to reverse lower and form back-to-back bearish reversal candlesticks.

SMH is now testing rising support at (3). If that support breaks, this tech leader will send a negative message to investors. Stay tuned!

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