Semiconductors pulled back hard — the setup does not favor a new entry right now

Semiconductors pulled back hard — the setup does not favor a new entry right now

SOXX closed at $591.24 on June 16 after a 5.92% single-day drop on volume of 11.2M shares. The stock opened at $623.84 and closed at $591.24 — a wide range to the downside on heavy volume. The setup does not favor a new entry right now. Wait for price to settle and get back above key support levels before stepping in.

For existing holders, the call is to hold but stay alert. The PIMM Score sits at 4, all four moving averages are still pointing up, and SOXX remains well above its 200-day MA at $356.40. The overall momentum structure is intact. But the size of the red candle means tightening stops and watching closely for more selling in the days ahead.

The key level to watch: SOXX closed just above the 10-day MA at $583.61. A follow-up down day that breaks below that level is the first warning sign. The best buy zone for a momentum trader watching this pullback is between $559 and $582, where two Fibonacci levels align. If SOXX reclaims $598 on a green day with strong volume, that's the signal the pullback is done.

Gobble's Take: A 5.92% drop on heavy volume is not a setup — it's a warning to wait for buyers to prove they're back.

Source: The PIMM Trader

BSE Sensex technicals: the chart gets a vote, the volume gets a mic

Technical analysis reads price movements and volume to spot trends and signals — informing when to buy, when to sell, and when to sit still. The BSE Sensex tracks 30 large, financially sound companies and serves as the benchmark for Indian capital markets.

Gobble's Take: In this market, the chart doesn't whisper — it testifies.

Source: Perplexity Search (evergreen)

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