The Direxion Daily Semiconductor Bull 3X Shares SOXL surged over 7% on Thursday, poised to confirm an upward trajectory.
In a semiconductor sector bull cycle, NVIDIA Corporation NVDA soared to new heights while Advanced Micro Devices, Inc AMD rode a wave of positivity.
SOXL, a triple-leveraged fund, is driven by a mix of semiconductor stocks, with AMD accounting for 8.67% and Nvidia at 7.54%.
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The S&P 500 hinted at potential new highs post a Federal Reserve inflation gauge meeting expectations as tech stocks, especially chipmakers, surged in sync with the market.
Traders cautious about the semiconductor sector or expecting a pullback can monitor the Direxion Daily Semiconductor Bear 3X Shares SOXS.
It’s worth noting that Direxion’s leveraged funds are geared towards short-term traders and are not meant for long-term holding.
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Examining the SOXL Chart: SOXL experienced a consistent uptrend since Oct. 31, forming a bullish double-bottom pattern at $14.09. From Dec. 14, SOXL’s ascent followed an upward channel pattern, signaling bullish momentum unless the ETF falls below the ascending trend line.
- As SOXL’s price hit higher highs and higher lows, the relative strength index (RSI) showed lower lows, indicating a loss of momentum.
- Bulls seek a close above the Feb. 23 high of $42.68 to confirm the uptrend, while bears look for a close below to signal a possible retracement.
- Resistance lies ahead at $44.97 and $50, with support at $41.60 and $39.53.
