Verified Investing on $SMH (Nov 5, 2026)
SMH plunged through its 50-day moving average rather than bouncing as it usually does, signaling heavy selling pressure; the 427.94 pivot is a possible near-term downside destination, though with RSI at 26.03 a technical bounce could retest the broken trend lines near 484.15.
Jump to any passage
Next up into the SMH, guys, this threw me for a little bit of a loop as we talked about yesterday on the weekly time frame. Look at this 50 moving average guys in blue. I was anticipating a bounce at this location because there are very few occasions.
You can just see back here in the chart the most recent example when we've moved from an extended point through the 20 into the 50 and receive a bounce. You can see that that's the case most every time.
Even when this wasn't that big of a move, we moved right through the 20 into the 50 and still bounced off of that range coming from the 20 as high as we are plunging straight down into the 50 and then moving through it.
That is a lot of selling pressure in the markets. Now, you can cleanly see that pivot that I uh drew out and talked about right there at 42794 could be the near-term destination for this selling pressure, but I remind you and point you back down to the RSI at the bottom of the screen, 26.03, 03 guys.
That tells me at any given moment we can see a technical bounce that could take us back up to retest this now broken declining trend line and broken inclining trend line. Almost like an X marks the spot right here at 484 and.15.
What this channel has said about $SMH
Verified Investing has 30 calls on this stock; only the adjacent ones are shown.