SOXX – global chip sector around the CES in focus

Since Sunday, the focus in the world of AI, semiconductors, electronics, internet and digital economy has been on the internationally well-known and renowned trade fair "CES" (Consumer Electronics Show), which will take place in Las Vegas in the US state of Nevada until January 10, 2025. For many years, the trade fair has been more than just a forum for consumer electronics. The product categories now also extend to the automotive industry with its numerous computer and electronics areas (among other things, new head-up displays for vehicles are to be presented), but also to subject areas such as AI, AR and VR, blockchain, cryptocurrencies, digital health, Internet of Things, metaverse, robotics, quantum computing, space technology and autonomous driving.

Around the “CES”, it might be interesting to take a look at the reference index “ ICE Semiconductor Index ” in the index variant “ Total Return ”. This index is replicated by the “ iShares Semiconductor ETF ”, a US ETF. Via  ActivTrader,  traders can trade this ETF with leverage in both market directions as required. The trading symbol is “SOXX.US”. 

The ETF is traded on the NASDAQ technology exchange with high liquidity and is therefore also suitable as an effective trading instrument for traders. With only

The individual stocks of the “SOXX” belong to the crème de la crème of the international chip industry. Around 80 percent of the “ ICE Semiconductor Index ” are semiconductor stocks. a sector index. The most important individual stocks include stocks such as " Nvidia ", " Broadcom ", " Advanced Micro Devices " ( AMD ), " Intel ", " Texas Instruments ", " Microchip Technology ", " NXP Semiconductors ", " ON Semiconductor ", " Applied Material ", " Analog Devices ", " KLA ", " Qualcomm ", " Marvell Technology ", " Lam Research ", " Taiwan Semiconductor Manufacturing Company " ( TSMC ), " Micron Technology ", " ASML Holding , Monolith Power Systems , Skyworks Solutions , Teradyne , Entegris , STMicroelectronics , Lattice Semiconductor ,  Qorvo , Wolfspeed , MKS Instruments , United Micro Electronics , Silicon Laboratories , ASE Technology Holding and Synaptics .

This analysis is based on the CFD on the  iShares Semiconductor ETF  ( ActivTrader symbol: SOXX.US ) in the daily chart. In order to be able to determine the next targets for the bulls and bears more precisely, a Fibonacci analysis would be necessary. The Fibonacci retracements and Fibonacci projections generated by the web-based trading platform “ ActivTrader ” could then be used to possibly determine the targets for the top and bottom more precisely.

Starting from the last low of August 5, 2024 of 192,850 US dollars to the intermediate high of October 15, 2024 of 240,440 US dollars, the next resistances would be at the levels of 229,209 US dollars (0.236%) and 240,440 US dollars (0.00%). The supports would be at 222,261 US dollars (0.382%), 216,645 US dollars (0.50%), 211,029 US dollars (0.618%), 204,081 US dollars (0.764%) and 192,850 US dollars (0.00%). The three EMAs ( EMA50 in purple color,  EMA100 in blue color and EMA200 in red color ) were moving in the area of ​​the 0.382 and 0.50 percent Fibonacci retracements at the time of this analysis. 

On the upside, a target at the 0.00 percent Fibonacci retracement (i.e. the last interim high) of 240,440 US dollars would be conceivable. On the downside, the bears could target the 1.00 percent Fibonacci retracement of 192,850 US dollars. The respective price target areas were marked here in the chart using a rectangle ( green rectangle for the bulls' price target, red rectangle for the bears' target ). At the time of this analysis, the Relative Strength Index was at 53.33 points, indicating that the market was still neutral.

Source: ActivTrader

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