Verified Investing on $SMH (Oct 30, 2026)
SMH is under extreme selling pressure after a 3-day surge failed at 50% channel resistance from the April 2025 lows and this year's April breakout failed. Minor support may appear at 52755, but SMH is likely headed in coming trading days to the $500 area, the 50363 July low pivot; after tagging the declining trendline, a bounce is possible.
Jump to any passage
Next up, guys, into the SMH. Now, the SMH, and I cover this in trading, the close every single day. This is my barometer for risk on risk off scenarios in the market specifically during this AI uh data center and techled rally that we've experienced in the year 2026.
Now if you can see on this chart I've highlighted this area of resistance on the chart the 50% area of the parallel channel. We had a beautiful 3-day surge right up into that level and that level held as resistance.
Now, this parallel channel, guys, dates all the way back to the April 2025 lows. It's a very narrow one, one that price mainly was contained in until we had this breakout in April of this year, and then we tried to maintain above it and have since continue failing, driving price down lower.
Now, the SMH under extreme pressure today. We could have a minor minor bit of support here at the 52755. I see the destination for the SMH selling pressure. If it doesn't get there today, which would be unlikely.
This would be a huge drop, but in the coming trading days, this low pivot right around $500, key psychological whole round number. 50363 was the low pivot in July. That's where the SMH is likely headed.
Plus, we've got this declining trend line that designated the breakout attempt on the SMH, and I anticipate price to eventually come down, tag that trend line, and then we can see our potential next bounce.
What this channel has said about $SMH
Verified Investing has 30 calls on this stock; only the adjacent ones are shown.