The weekly chart for the Philadelphia Semiconductor Index shows a breakout from the multi-year pennant which formed after the semis topped out in 2011. There are many upside levels for bulls to capture in order to cement the breakout. However, I wanted to point out the lower “shadows” or wicks on the weekly candles printed since the breakout. Note that they backtested the prior resistance trendline and held true.
At some point during a bull run, seeing the semis take the baton of leadership seems inevitable. The 420 level clearly still needs to hold. But with that reference point in mind the risk/reward seems favorable for upside, even with little fanfare for the sector this time.
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