Friday, January 04, 2013
Semiconductor stocks poised for a minor rally
Two days ago, the Philadelphia Semiconductor Index ('SOX') broke above its intermediate downtrend line at 390. This upside breakout could be the start of a minor rally, similar to what we saw in January-March 2012.
Chart 1: SOX's daily chart as at Jan 3, 2013 (Source: Stockcharts)
In early 2012, Unisem & MPI also had a decent rally, when Unisem rose from RM1.00 to RM1.60 while MPI rose from RM2.70 to RM3.50.
Chart 2: Unisem's daily chart as at Jan 4, 2013_12.00pm (Source: Stockcharts)
Chart 3: MPI's daily chart as at Jan 4, 2013_12.00pm (Source: Stockcharts)
If the breakout for SOX can sustain, then we may see a similar rally in Unisem & MPI. As such, these two stocks could be a good trading BUY.
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Unisem & MPI.