Chart 1: Philadelphia Semiconductor Index (SOX)'s daily chart as at April 14, 2017 (Source: Stockcharts.com)
If we look at the weekly chart, we will see MACD has hooked down and -DMI has crossed above +DMI. This negative signal may lead to a prolonged period of consolidation similar to that experienced in August 2015 to February 2016 (denoted as “B” on the SOX weekly chart) or a brief but sharp correction as witnessed by the market in September 2014 (denoted as “A” on the SOX weekly chart).
Chart 2: Philadelphia Semiconductor Index (SOX)'s weekly chart as at April 14, 2017 (Source: Stockcharts.com)
Looking at our the weekly charts of MPI & Unisem, we can see similar consolidation or correction (denoted as “A” and "B" respectively). Undoubtedly the share prices of both MPI & Unisem are off their recent high today. If you expect SOX to correct or consolidate in the next few days or weeks, you should take precaution by avoiding MPI or Unisem. As at 3:55 pm, MPI & Unisem were trading at RM10.96 & RM3.01 respectively.
Chart 3: MPI's weekly chart as at April 14, 2017 (Source: Malaysiastock.biz)
Chart 4: Unisem's weekly chart as at April 14, 2017 (Source: Malaysiastock.biz)
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