Larry Berman CFA, CMT, CTAPhiladelphia SemiconductorSOX-ITOP PICKSep 20, 2004
Fundamentals on the group has been awful all year and continue to deteriorate, but looking at the chart, starting to see the very early signs of base patterns. Technical target in the $450 area.
The sector was red hot since the US election but is taking a pause right now. It is consolidating, which is a positive thing. So long as the chart holds the support level and if it breaks the lid then it would mean it just consolidated.
(A Top Pick Sept 20/04. Up 8%.) Target was $450 which was hit, so that's off. Still likes technology as a rule, but have taken some profit. Will look to buy back in, in the $400/410 range. Treating as a trading stock now.