tech
A countertrend buy signal has flashed in this software name, says Katie Stockton
Katie Stockton breaks down the technicals in this software name.
TL;DR
- Semiconductor stocks have experienced strong recent gains.
- Monitor the 20-day moving average (MA) as a short-term trend indicator for semiconductor stocks like Micron (MU).
- A rollover in the 20-day MA suggests a potential time to reduce exposure.
- A ratio of semiconductor ETFs versus software ETFs has completed a double top pattern, signaling a potential shift favoring software.
- Salesforce (CRM) shows a favorable weekly chart setup with a counter-trend buy signal from DeMARK Indicators® and improved momentum.
- The technical setup for CRM supports upside potential towards resistance near $229.
- Risk management is advised for the steepening trends in the semiconductor sector.