The subsector indices for semis ([DWASEMI]) and computers ([DWACOMP]) have rallied 23% and 13%, respectively, since the beginning of Q2 (3/31/ - 4/15). While that sounds fantastic, investors will remain selective, as some stocks have witnessed abrupt improvement and now reside in extended, overbought positions on their charts.
As will be noted and discussed in further detail below in today’s feature article, many U.S. equity indices are trading at or near all-time chart highs, and some leadership dynamics from a sector perspective have shifted as indices have pushed higher. Among the notable shifts from an index-performance perspective, the Nasdaq Composite (NASD) and Nasdaq-100 (NDX) have both charged higher since the beginning of Q2, leading all indices with each up more than 10%. While the broader technology sector has been among the, if not the, biggest contributors to the Nasdaq indexes’ upside, two of its subsectors—semiconductors and computers—have been the primary culprits.
The subsector indices for semis (DWASEMI) and computers (DWACOMP) have rallied 23% and 13%, respectively, since the beginning of Q2 (3/31/ - 4/15). While that sounds fantastic, investors will remain selective, as some stocks have witnessed abrupt improvement and now reside in extended, overbought positions on their charts. Below are a few examples that have shown technical improvement this week; the additional two examples provide chart pictures and metrics to monitor for positions where exposure could be considered.
CoreWeave (CRWV) and Intel (INTC) provide the most notable examples of technical improvement, as shares have rallied into extended, overbought territory. Both stocks have improved to 5 technical-attribute–rated status since the beginning of Q2, with CRWV climbing from a 1 TA rating and INTC improving from a 3 TA rating. On both trend charts, all of April’s ascension has occurred within one column of Xs, with CRWV climbing more than 53% in Q2 and INTC gaining 47%. The rally places both charts in overbought territory (weekly OBOS > 70%), with INTC residing in extremely overbought territory (weekly OBOS > 100%). Given their extended positions, those monitoring CRWV and INTC would look for consolidation near current prices, along with a normalization of the 10-week trading band, before considering initial or additional exposure. Earnings for each stock are upcoming, with INTC reporting on 4/23 and CRWV reporting on 5/13.
Seagate Technology (STX) has gained more than 30% so far in Q2, rallying to a new all-time chart high this week. Though the 5 for 5’er pulled back during Wednesday’s (4/15) trading to $504, Thursday's (4/16) trading led to a reversal back into Xs, placing a higher bottom and locatlized support at $504. While not quite as overbought as the prior two examples, STX still maintains a weekly OBOS reading near 80%. Given the overbought posture and current chart formation, investors will look for the stock to consolidation at current chart levels along with a normalization of the 10-week trading band before considering. Beyond initial support at $504, prior resistance in the $450 area may be seen as support while additional can be found in the $400–$420 range. Earnings for Seagate are expected on 4/28.
While investors will monitor near-term action for STX to pull back to a more actionable range, Lam Research (LRCX) has already done so after rallying to a new all-time chart high at $272 during Wednesday’s (4/14) trading and then pulling back to prior resistance in the $250 range during Thursday’s (4/15) session. Another distinction between LRCX and other stocks that have rallied recently is that LRCX has maintained a 5 technical-attribute rating since May 2025, while others experienced technical deterioration to start 2026 and have only recently rebounded. Those who already own LRCX may consider the stock at current levels following the pullback, while those seeking to initiate exposure would look for a reversal back into a column of Xs near $268. Beyond current support in the $250 range, longer-term support can be found at $212 and $200. Earnings for LRCX are due to report on 4/22.
Analog Devices (ADI) has not seen the same level of ascension as the prior examples, gaining 9% since the beginning of Q2. However, similar to LRCX, the stock has maintained a high technical-attribute rating through much of the turbulence in Q1 2026. On the trend chart, the 4 for 5’er recorded a second buy signal during last week’s trading session before carrying to within a couple of boxes of its all-time chart high during this week’s action. ADI is actionable near highs, but also on a pullback to the $330–$340 range. Initial support lies at $312, with additional support at $304 and $296.
