Now that the Semiconductor HLDRs (AMEX: SMH) has held its 200 DMA (at the end of March) and has hurdled its 50-day MA at 34.21 today, in the aftermath of a messy sideways EKG pattern from the October high at 35.95 to the October low at 33.15, it is time to enter a long position for what I expect will be a new upleg that takes out 36.00 on the way to 37.50-38.00. The fact that SMH components TXN, AMAT, INTC, ADL and KLAC all have very promising chart patterns suggests strongly that the SMH should participate in a very strong advance. Only a decline that breaks 33.00 will destroy the emerging pattern.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.