Epure – it is time to take a breather!

Epure International closed with a black marubozu candle today at $0.61. It has also formed a Head and Shoulders and will probably retrace back to test the 20D and 50D MA support lines again. If it breaks these MA support lines and move south, the trend reversal is confirmed. The chart and candlesticks pattern look bearish. However, a retracement back to $0.46 (61.8% Fibonacci Retracement level) is good for a healthy long term up trend.

Semiconductor ETF (SMH) rides on semiconductor growth in 2010

Semicondutor industry is a cyclical industry. It is forecasted this industry will grow at a minimum of 10% in 2010. Recent semiconductor industry reviews:

  • Global semiconductor revenue could grow about 10 percent next year after two years of declines, as new computers and feature-jammed smartphones help boost chip demand – Gartner
  • Global pure-play semiconductor foundry revenue will decline about 11% in 2009, but then increase 21% in 2010 – iSuppli
  • The chip sector has been struggling over the last few years as the global economy, oversupply, and price pressures have stalled sales. But as the oversupply and under-demand cycle has stabilized, sales have improved, according to recent reports from the Semiconductor Industry Association.
SMH is the Semiconductor HOLDRs trust ETF and its top ten holding as follow:

SMH broke the long term Fibonacci 61.8% resistance of $24.763 and this level had become a very strong support level.
SMH is currently testing its another strong resistance at $26.24. If SMH can stay above this resistance turned support level, the uptrend is confirmed. Otherwise, it may retrace back to $21.809. SMH has not retraced back to this 61.8% Fibonacci level yet to build the base for future up trend. SMH is currently above 20D, 50D and 200D MA.