After Yesterday's Rally of 1.90% Shares Could Potentially Pullback
Semiconductor HOLDRs Trust (AMEX:SMH) traded in a range yesterday that spanned from a low of $68.81 to a high of $69.75. Yesterday, the shares gained 1.9%, which took the trading range above the 3-day high of $68.79 on volume of 1.8 million shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.
Over the past year, Semiconductor HOLDRs Trust has traded in a range of $43.53 to $69.75 and is now at $69.62, 60% above that low. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has advanced 0.4%.
SmarTrend recommended that subscribers consider buying shares of Semiconductor HOLDRs Trust on June 30th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $56.72. Since that recommendation, shares of Semiconductor HOLDRs Trust have risen 20.5%. We continue to monitor SMH for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
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