Samsung Probes Key Resistance, Bulls and Bears Build Their Case [Video]
|Samsung has seen an intraday break of key resistance, yet volumes are low and bears may have a case to make. Whichever camp you’re in, keep a close eye on price action around current levels as it could pace the way for a sizable move in either direction.
Bullish clues:
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Trade tensions between US and China have thawed (for now)
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A multi-month, inverted head and shoulders could be close to a breakout
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Bullish momentum has erupted of late, heading into key resistance (the neckline)
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A small bullish hammer marks a clear swing low beneath the neckline
Bearish clues:
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Trade tensions between US and China could return (although this will likely be October if they do)
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Samsung has underperformed relative to the Semiconductor ETF (SOXX) this past year
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SOXX resides below key resistance after an already solid run (will resistance hold for the sector?)
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Today’s intraday breakout has been seen on low volume. A breakout on low volume (or series of bearish candles which revert beneath the breakout level) could be used to warn of a bull-trap
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