Direxion Daily Semiconductor Bull 3X Shares SOXL surged over 7% on Thursday, poised for a new high to affirm its bullish trend.
Within the semiconductor sector, NVIDIA Corporation NVDA soars to unprecedented heights, riding a wave of new all-time highs following strong quarterly earnings. Meanwhile, Advanced Micro Devices, Inc AMD climbs higher on positive sector sentiment.
SOXL, a triple-leveraged fund, comprises various semiconductor stocks, with AMD representing 8.67% and Nvidia at 7.54%.
The S&P 500 shows signs of breaking out from a bull flag pattern, hinting at potential new all-time highs, supported by the Federal Reserve’s meeting expectations on inflation. Tech stocks, including semiconductor companies, mirror the broader market’s upward momentum.
Traders anticipating a semiconductor sector downturn can monitor Direxion Daily Semiconductor Bear 3X Shares SOXS.
Note that Direxion’s leveraged funds cater to short-term traders and are not suited for long-term investment strategies.
The SOXL Chart: Since Oct. 31, SOXL has been on an upward trajectory, reinforcing its bullish stance after forming a double-bottom pattern at $14.09. The ETF has been trading within a rising channel pattern since Dec. 14, symbolizing bullish sentiment until a breach below the lower ascending trend line occurs.
- While SOXL’s price trend displays higher highs and higher lows, the relative strength index (RSI) paints a different picture with lower lows, indicating a loss of momentum.
- Bullish traders anticipate a closing above the Feb. 23 high of $42.68 to confirm the uptrend, while a close below may signal a retracement with a possible double-top formation.
- Resistance levels for SOXL stand at $44.97 and $50, with support at $41.60 and $39.53.
