[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



Related Articles

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.