The iShares PHLX Semiconductor ETF (SOXX) has been a great performer in 2019 as Semiconductor stocks like Advanced Micro Devices Inc. (AMD), up 68%, Intel Corp. (INTC), up 78%; Synopsys Inc. (SNPS), up 60%; Applied Materials Inc. (AMAT), up 57%) and NVIDIA Corp. (NVDA), up 43%), have excelled in the Technology sector.
Semiconductor stocks breakout also signals a potential bullish breakout for S&P500 and Technology stocks in the last quarter of 2019 (see table of the list of Semiconductor Stocks and their 2019 performances compared to 2018 below).
The PHLX Semiconductor Index SOX has an Ascending Triangle pattern. A strong close above 1630 could signal a breakout with targets towards 1850-1900. There are a number of components of the index with tradeable patterns.
AMD's Cup & Handle Pattern
AMD is trading in a Cup & Handle pattern as it is currently forming the Handle part of the pattern. A close above $34.14 would signal Cup & Handle breakout with targets to $41, $45 and $48 (see chart).
NVDA's ABC Bullish Pattern
Since May 2019, after making lows, NVDA has been trading in an ABC Bullish pattern with the entry above $153. Target Range: $176-183, $206-222.
AVGO's Symmetric Triangle Pattern
Broadcom, Inc. (AVGO) has been trading side-ways forming a Symmetric Triangle pattern. A close above $294 could signal a breakout of more than 10% with a target range of $320 to $330 (see chart).
Find more of Suri’s work at surinotes.com.
