Merrill Lynch Semiconductor HOLDRS(SMH) is in an downtrend but momentum is showing some life

(29-Feb-2008) (29-Feb-2008) Merrill Lynch Semiconductor HOLDRS(SMH) closed at 29.45, down -0.42 or -1.41 % today. Based on our analysis, Merrill Lynch Semiconductor HOLDRS(SMH) is in an downtrend but momentum is showing some life.

The closing price of Merrill Lynch Semiconductor HOLDRS(SMH) is below its 50 day moving average of 29.6 (Designated by blue line). This indicates that the trend is down. The MACD histogram(Gray bars on the bottom) above the signal line(Dark Red Line) tells us that Merrill Lynch Semiconductor HOLDRS(SMH) is gaining momentum. An downtrend with sustained rising momentum could be early sign of reversal. The MACD histogram crossed above the signal line on 24-Jan-2008, about 26 trading days ago.