$SMH: A Strong Bounce Could Be Setting Up
I'm not usually one to call bottoms, but $VanEck Semiconductor ETF(SMH)$ is showing several technical signals that make this area worth watching.
Semiconductors have found support at the year-to-date anchored VWAP — the same level that held in late July before the ETF rallied back above $630.
There's another reason this zone matters: the 200-day moving average is sitting right around $515, lining up with the VWAP to create a confluence of two major support levels.
📊 Momentum is also showing a potential shift.
RSI has formed a bullish divergence. Price made a lower low, while RSI made a higher low, suggesting selling momentum may be fading.
🎯 Key levels to watch:
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Support: Around $515, where the YTD anchored VWAP and 200-day MA converge
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First upside target: The 50-day moving average near $575
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Invalidation: A daily close back below both the VWAP and 200-day MA
🐯 If support holds, $SMH could be setting up for a meaningful relief rally. But the confirmation matters — until buyers defend this zone, a bounce remains a possibility, not a certainty.
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