Technology stocks remain hot as semiconductor stocks like Nvidia (NASDAQ:) continue to lead the way higher.

In that light, we take another look at the red-hot VanEck Semiconductor ETF (NASDAQ:) and highlight why it should be on your radar. Note that we have written about several similar trading setups lately.

Below we have a weekly chart of the Semiconductors Sector ETF (SMH).

When applying Fibonacci extensions using the 2020 low and 2021 high, we can see that SMH is currently attempting to break out above its 161% Fibonacci extension level.

Barring a major reversal of fortune, the next Fibonacci extension level (261%) could be reached sometime in the intermediate term.