$Philadelphia Semiconductor Index(SOX)$ is the index for semiconductor stocks. in order to gather insights about the semiconductor industry through technical analysis, we will have to take a look at the index and compare it with$NASDAQ(.IXIC)$  .

from the pnf charts, you can observe that both of them are at all time highs. the upward trend is there. 

the fed projects 3 rate cuts in 2024. the semiconductor industry is very sensitive to interest rates. this along with the ai craze fueled the rally to all time highs. the market is forward looking, usually 6 months ahead.

rather than invest in individual stocks, it would be wiser to invest in the etf such as $Invesco PHLX Semiconductor ETF(SOXQ)$ . there are quite a few etfs to choose from. there are also leveraged etfs that magnify gains and losses by 3x. the rational is that there are leaders and laggards in each industry. hence the laggards will continue to rally while the leaders consolidate. 

the uptrend is there, so the strategy is to buy the dip. do apply automatic investment system where you add shares at each 10% drop or at support zones if you know technical analysis. this way you conserve your capital while the stock is strongly downtrending. do take profit at 10% intervals or at resistance zones if you know technical analysis. this way you have capital to buy the dip. only applies to stocks in an index or warren buffett would approve. bon courage.

merci beaucoup@TigerWire for the interesting topics to post

merci beaucoup@TigerStars for the award and reviewing our posts

merci beaucoup@Asphen for sharing your analysis

merci beaucoup @koolgal for your posts on semiconductor