Craig Johnson, chief market technician at Piper Sandler, says the coast is not clear for semiconductors.
"We've violated the uptrend support line coming off of those March lows, and now you're starting to see some sort of sideways price action, possibly a little head-and-shoulders top in the making here in the charts," Johnson told CNBC's "A head-and-shoulders pattern – formed by a high, a higher high and a lower high – suggests a failed attempt to break out and indicates possible downside ahead.
Danielle Shay, director of operation of Simpler Trading, is more bullish on the semis space and says pullbacks could be a buying opportunity. "We've seen so much volatility when it comes to the semiconductors. Think back to the trade war. Every time that ramped up, we had huge volatility in the semiconductors, but we're significantly higher than we were at that point. I think that this chip shortage is just going to be a little blip, and I think it's a great buying opportunity particularly forTaiwan Semiconductor has pulled back sharply recently, down 18% from a February peak.
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