STMicroelectronics builds bearish momentum towards key support at $47.27

• Price action honing in on likely support at $47.27
• STMicroelectronics looks below $48.23 (10 day Simple Moving Average) as signpost for new negative trend

STMicroelectronics's downtrend has seen it decline 5% in 5 days Yesterday's session continued the recent downtrend: in yesterday's bearish session, the Dutch semiconductor maker shed around 2.37% in quick fashion, found support around the $47.54 level and finally closed at $47.7. In contrast, the day's events followed Tuesday's session in which the stock closed at $48.86.

The stock has been trending positively for about a month. The Dutch semiconductor maker has managed to gain 33.83% so far this year despite trading at lows around $29.56 previously.

STMicroelectronics N.V. made an initial break below its 10 day Simple Moving Average at $48.23, a possible indication of a forthcoming negative trend. Despite this, STMicroelectronics could begin to recover as it approaches significant support, now 43 cents away from $47.27. Dipping below could be an indication that further losses are ahead.

Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting STMicroelectronics to extend its recent losses.

Fundamental indicators – United States API Weekly Crude Oil Stock came out at -1.25 million, while a consensus of analysts was expecting -433,000.

STMicroelectronics was not the only decliner in the technology sector; Intel went down 6%, closed at $35. AMD lost 5.73% yesterday and closed at $112.11. Salesforce went down 3.4%, closed at $216.97.

Upcoming fundamentals: projections for United States Crude Oil Inventories are set for a continuation of decline with 1.87 million while previous data was 7.92 million; data will be released today at 15:00 UTC.