NEW YORK (TheStreet) -- NXP Semiconductors (NXPI) - Get Report gapped sharply lower this morning, by up to 17%, and continues to be pressured. Will the stock stop falling?

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In this first chart of NXPI, above, we can see how NXPI held the $80 level for the months of August, September and October until it blew through it this morning. Now, look at the left side of this chart. We can see how prices stalled in the $70-$80 area before it rallied further. Chartists call this $70-$80 area resistance, as it halted the rally in NXPI for two to three months. Areas on the chart that act as resistance on the way up tend to act as support on the way down. The $80 level did act as support until it was broken.

Working on a fixed-income trading desk some 30 years ago, I learned about a rule of thumb from a trader at the fabled Commodity Corp. in Princeton, NJ. It goes like this: If a security goes more than halfway through a support or resistance area, it is likely to go all the way through. What does that mean for NXPI? If we consider the $80-$70 area as support, then we have seen NXPI trade below $75, the halfway point, this morning.

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In this longer picture of NXPI, above, we can see another band of consolidation in the $75-$60 area. NXPI is likely to push down into this area before it attracts buyers. Remember that technical analysis is not a crystal ball. We will have to wait and see where the sellers become exhausted and buyers return.