3x Short Semiconductor: Pullback Support Levels After Rallying to 76.08
During the session, a broad sell-off across semiconductor and chip stocks triggered a surge in volume and a strong bullish candle, with the price reaching a high near 76.08. It is now pulling back on declining volume on the 1-hour chart, consolidating and building momentum in the 70.0–70.9 range.
Key level to watch: 69.80–70.20, critical neckline support:
- As long as the 69.80 level holds, this is a healthy pullback after the rally. Consider scaling in between 70.00 and 70.80 to position for a second push higher;
- Set a firm stop-loss at 68.80 (a decisive break below this level signals that bullish momentum has faded; exit decisively to avoid a second sharp reversal);
- On the upside, watch 73.80 as the first resistance. A breakout would put the previous high of 76.08 and the extreme target of 78.50 in view.
Chasing the rally at these highs offers a very poor risk-reward ratio. It is safer to wait for a low-volume pullback to the neckline and confirmation that support is holding before entering.
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English Setup:
Key Resistance: 3.80 / 6.08
Critical Support: 9.80 - 0.20
Invalidation: Hard stop below 8.80
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Big bull-versus-bear poll: Is the broad retreat in semiconductor and chip stocks fueling a bullish candle in the short ETF, with a pullback to the 70 level setting up for a second attempt to break the highs—or is this a short squeeze running out of steam, luring buyers into a trap? Join the discussion in the comments!
#TradFi #USStocks
During the session, a broad sell-off across semiconductor and chip stocks triggered a surge in volume and a strong bullish candle, with the price reaching a high near 76.08. It is now pulling back on declining volume on the 1-hour chart, consolidating and building momentum in the 70.0–70.9 range.
Key level to watch: 69.80–70.20, critical neckline support:
- As long as the 69.80 level holds, this is a healthy pullback after the rally. Consider scaling in between 70.00 and 70.80 to position for a second push higher;
- Set a firm stop-loss at 68.80 (a decisive break below this level signals that bullish momentum has faded; exit decisively to avoid a second sharp reversal);
- On the upside, watch 73.80 as the first resistance. A breakout would put the previous high of 76.08 and the extreme target of 78.50 in view.
Chasing the rally at these highs offers a very poor risk-reward ratio. It is safer to wait for a low-volume pullback to the neckline and confirmation that support is holding before entering.
---
English Setup:
Key Resistance: 3.80 / 6.08
Critical Support: 9.80 - 0.20
Invalidation: Hard stop below 8.80
---
Big bull-versus-bear poll: Is the broad retreat in semiconductor and chip stocks fueling a bullish candle in the short ETF, with a pullback to the 70 level setting up for a second attempt to break the highs—or is this a short squeeze running out of steam, luring buyers into a trap? Join the discussion in the comments!
#TradFi #USStocks