Compagnie Generale des Etablissements Michelin SCA

SMH remains in a Stage 4 Decline with an active Support Failure pattern signaling sustained distribution and loss of support. Price is extended below the 9 and 21 EMAs as well as the 50 DMA in a downtrend and is oversold, indicating a likely relief bounce. With the tradable side firmly bearish, execution should be deferred until rallies into resistance zones near the 9 and 21 EMAs.

• ↑82% of fund managers favor long semiconductors, indicating robust sentiment
• ↑Price +111.7% over 52 weeks, +64.5% YTD; P/E at 15.6x supports growth
• ↓SMH trading near decade-high valuations risks mean reversion if growth falters