A Head and Shoulders Top in Motorola

MOT is dropping down from a head and shoulders top formation. Classical chartists would consider the breakdown below the neckline on March 30, 2000 to be a sell signal and the current four-day rally from those lows to be a potential fake-out. MOT is also forming a downtrending channel and, at the time of this writing, is bouncing down from the top of it. MOT is considered to be one of the leaders of its sector and a continued sell-off in this stock will not be a good sign for semiconductor stocks as a whole.

Other semiconductor stocks also exhibiting head and shoulders patterns include: (QLGC | Quote | Chart | News | PowerRating), (CRUS | Quote | Chart | News | PowerRating), and (ANAD | Quote | Chart | News | PowerRating).