Semiconductors HOLDRs (SMH) just touched a newly created downtrend line. The downtrend line resistance held for the third consecutive time, making it a relevant level in my book. The most recent move to the resistance level almost failed. SMH pushed through downtrend line resistance intraday, but did not manage to close above it.

SMH must be watched very closely from here. It bottomed out at 29.02 on July 21. SMH should continue downside price action from here, and make a new low in order to keep the downtrend line in tact. The 29.02 previous low was an extremely weak point for SMH, and I don't feel extremely confident that the downtrend will be able to remain in tact much longer. We should see SMH test resistance again very soon after failing to make a new low. The next test will likely break the resistance level. I am bullish on SMH from a moderately long-term perspective.

Broadcom Corporation (BRCM) showed major support at 24 in Monday's trading session. The 1-day, 1-minute bar chart below gives you a visual perspective as to just how significant this support level was. A break of 24 support on heavy volume will likely lead to continued downside action. A move to the downside on light volume will likely result in continued support at 24, followed by upside price action.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.