Technical Outlook - US Sector trends. Semiconductors and Tech outperforming Technical Outlook - US Sector trends. Semiconductors and Tech outperforming Technical Outlook - US Sector trends. Semiconductors and Tech outperforming

Technical Outlook - US Sector trends. Semiconductors and Tech outperforming

Equities 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Medium-term analysis of some of the main Industries and Sectors in USA. Charts are all weekly time period and ETF’s are being used. 
This Sector and Industry analysis is planned to be updated bi-weekly and/or when there are some interesting developments. This analysis is planned to be with just short comments and explanations with direction and key support and resistance levels.

Source all charts and data: Saxo Group
Semiconductor
Inverted Shoulder-Head-Shoulder pattern is still in the process of unfolding its potential. Potential target at around 501.
SOXX closed last week the 434.42 resistance confirming the upside potential to 500.
If price closes below the 396 the uptrend has reversed and the Neckline of the S-H-S pattern is very likely to being tested and a close below the Neckline will demolished the upside picture.

Industrial
Range bound. Bounced from lower range support at 96.30 and 55 weekly Moving Average. If closing below Industrial is likely drop to around 90 i.e., 200 MA. Close above 104.20 likely new highs

Energy
Energy jumped back above resistance at 82.65. Weekly RSI didn’t close below 40 gave upside energy for a strong bounce. If RSI closes back above its falling trendline and above 60 expect Energy to test previous highs around 93-95.
If closing the gap and back below 82.65 bear trend is likely to unfold.

Oil & Gas
Oil & Gas closed below rising trendline breaking bearish out of Symmetrical Triangle like pattern  only to bounce strongly from key support at 114.58.
Currently t4esting rising trendline. A close back above and above 55 weekly Moving Average could push Oil&Gas higher towards 146 resistance possibly testing upper falling trendline
If rejected at the rising trendline Oil & Gas could slide back towards support at 114.58

Metals and Mining Industry
Has broken below lower rising trendline in the Rising Wedge like pattern only to bounce from key support at around 48.48. A close below could fuel another sell off down around 40.
A close back above the lower falling trendline is likely to result in Metals and Mining to resume uptrend

Financial
Financials took out several support levels including key support at around 33.19. The Sector is in a downtrend supported by RSI showing negative sentiment which is an indicating of lower levels.


Transportation
Transportation broken bearish out of rising channel pattern. Bounced from key support at around 211.48. Rejected at 55 weekly Moving Average.    
Technology
Broken above medium-term falling trendline and has established an uptrend. A close above resistance at around 152 will pave the way for 164
RSI above 60 confirming the uptrend.

Materials
Materials should be considered range bound. RSI still positive indicating the break below support 76.66 is a false break. Range: 75.50 for 65.00 – 84.60 for 90.61

Utilities
Dipped below 200 weekly Moving Average to the 0.786 retracement but has managed to close back above 200 MA. If Utilities can close above 68.80 there could be upside to around 72.50-75.00.
A close below the 200 weekly Moving Average is likely to result in Utilities extending downtrend with 2022 lows around 60 as first target.
RSI is showing negative sentiment  that could accelerate if RSI breaks back below 40. For Utilities to reverse the downtrend a close above 72.50 is needed with first indication of that scenario to play out would be a close above 68.80


Retail
Bearish trend. RSI is still showing positive sentiment, however, indicating what we are seeing could just be a correction. But if Retail cannot close back above 200 MA the outlook is bearish with a potential move to 55 support. 55 weekly Moving Average putting a lid on the upside potential.


Health Care
Strong bounce but RSI still below 40 i.e., negative sentiment. A Sector close above 134 will reverse the downtrend. A close below 129.57 downtrend is likely to resume 
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