“Johnson believes $80 is a key level of support for the SMH. The ETF hit that level earlier last week and then bounced higher, so he believes the chart is indicating an uptrend,” according to CNBC.

In the fourth quarter, investors displayed no enthusiasm for chip ETFs, pulling a combined $590 million SMH and SOXX.

“We’re probably going to be range-bound. Probably $80 on the lower end, $100 on the upper end. We’re going to have to trade them in 2019, but I think this is a good way to trade it at this point,” said Johnson in the CNBC interview.

For investors looking to play leveraged strength or weakness in the semiconductor space can look to the Direxion Daily Semiconductor Bull 3X ETF (NYSEArca: SOXL) or Direxion Daily Semiconductor Bear 3X ETF (NYSEArca: SOXS).

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