The Semiconductor ETF SMH surged today, slamming into a long-term trend line. Why is it likely the SMH will pull back? This long term trend line is the trend from pre-Covid. Meaning, this was the trajectory the SMH was on before the pandemic hit. In other words, if the pandemic never hit, this is exactly the level you would expect SMH to tag prior to a pull back. Note on the chart below that pre-Covid, the trend line marked the top of each move before a pull back. Therefore, logic dictates it will likely pull back over the next few trading days.
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