Direxion Daily Semiconductor Bull 3X Shares SOXL was on an upward trajectory, gaining over 7% on Thursday, poised to set a new high and confirm its ongoing uptrend.
The semiconductor sector is currently in a bull cycle, with NVIDIA Corporation NVDA soaring to unprecedented heights, fueled by consistent quarterly earnings beats. Advanced Micro Devices, Inc AMD is also riding high on positive sentiment within the sector.
SOXL, a triple-leveraged fund comprising various semiconductor stocks, boasts AMD at 8.67% and Nvidia at 7.54% of its holdings.
On Thursday, the S&P 500 hinted at breaking out from a bull flag pattern, signaling a possible new all-time high following the Federal Reserve’s meeting expectations on preferred inflation indicators. Tech stocks, including chipmakers, mirrored the positive market movements.
Traders looking to bet against the semiconductor sector or anticipating a pullback can monitor the Direxion Daily Semiconductor Bear 3X Shares SOXS.
It’s essential to note that Direxion’s leveraged funds are tailored for short-term trading and not intended for prolonged holding periods.
The SOXL Chart: SOXL has maintained a steady uptrend since Oct. 31, forming a bullish double-bottom pattern at $14.09. The upward momentum continued within a rising channel pattern post-Dec. 14, considered bullish until a breakdown from the lower trend line.
- While SOXL’s price has been escalating, the relative strength index (RSI) portrayed lower lows, indicating bearish divergence and a loss of momentum.
- Bulls aim for a Thursday close above the high of $42.68 on Feb. 23 to confirm the uptrend. Conversely, a close below might signal potential retracement with a double-top formation.
- Resistance levels lie at $44.97 and the psychologically significant $50 mark, while support is seen at $41.60 and $39.53.