Future Semi Standout?
The semiconductors have been a standout as we know and I’ve been vocal last week stating that I think software will outperform on a relative basis, but of course, on an absolute basis there will be selective winners in each group. Below is the chart of ADI, which one can see on the ratio chart, has been underperforming the group. Technically I am warming up to the name if it can climb above the very round 200 number and CLOSE above 201.92. That would negate the bearish evening star pattern completed on 12/18/23, the bearish harami candle on 1/24, and the bearish dark cloud cover candle from 3/8 (all of these are circled on the chart). The 200-day SMA has held three times, perhaps too many with each of those touching points retesting the former bull flag breakout from early February. The very round 200 number was also a roadblock in late July with the last week of that month recording a bearish engulfing candle there. Last week registered a long-legged doji candle, so there is a lot to overcome near the 200 level, so be patient and wait if this can CLOSE above 201.92. If so it could be off to the races.