It’s been a big year for semiconductor stocks.
No doubt about it.
But since July, semiconductors have actually been pretty awful.
First we saw the inevitable big drop.
Then we’ve seen nothing but sideways. Here’s the semiconductor ETF chart:
What does that sideways movement mean, though?
As any breakout trader will tell you, it can mean that a stock (or a sector) is building up energy for a big breakout.
And we could be seeing that soon from Taiwan Semiconductor (TSM).
Here’s the chart:
TSM hasn’t struggled as much as the group has. And it’s very close to a breakout level.
A move above $205.63 could lead to a big holiday run.
We’ll keep an eye on it.
Happy holidays,
Scott
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