[Video] Samsung Probes Key Resistance, Bulls and Bears Build Their Case

Samsung has seen an intraday break of key resistance, yet volumes are low and bears may have a case to make for a bull-trap. Given its underperformance relative to Semiconductors (which is also below key resistance), we’re closely watching key levels to see how this plays out. Matt Simpson takes a technical look.

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:

  • Trade tensions between US and China have thawed (for now)
  • A multi-month, inverted head and shoulders could be close to a breakout
  • Bullish momentum has erupted of late, heading into key resistance (the neckline)
  • A small bullish hammer marks a clear swing low beneath the neckline

Bearish clues:

  • Trade tensions between US and China could return (although this will likely be October if they do)
  • Samsung has underperformed relative to the Semiconductor ETF (SOXX) this past year
  • SOXX resides below key resistance after an already solid run (will resistance hold for the sector?)
  • 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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