Surging Highs and Bullish Trends
The Direxion Daily Semiconductor Bull 3X Shares (SOXL) was flying high on Thursday, soaring over 7% as it aimed for new peaks to confirm its relentless upward trajectory.
Semiconductor Sector Surge
Within the semiconductor sector, a bullish cycle is in full swing, with NVIDIA Corporation (NVDA) soaring to unprecedented heights by consistently surpassing quarterly earnings estimates and setting new all-time highs. Advanced Micro Devices, Inc (AMD) is also ascending, buoyed by positive industry sentiment.
The Thrill of Triple-Leverage
SOXL, a triple-leveraged fund encompassing various semiconductor stocks, boasts AMD as a significant 8.67% holding and NVIDIA at a 7.54% weight.
Market Momentum and Technological Triumph
The S&P 500 index appeared poised to break free from a bullish flag pattern on Thursday, signaling a potential surge to fresh all-time highs following the Federal Reserve’s contentment with inflation trends. The recent optimistic movement in tech stocks, especially chipmakers, mirrors the prevailing positivity in the broader market.
Charting the Skyward Trajectory
SOXL has charted a consistent upward path since Oct. 31, marked by a bullish double-bottom formation at $14.09. From Dec. 14, the ETF has gracefully glided within a rising channel pattern, a bullish indicator unless breached from the lower trend line.
- While SOXL’s price has been climbing, its relative strength index has displayed weakening momentum, hinting at potential fluctuations.
- Bullish traders seek a closing price above the high of $42.68 on Thursday to cement the uptrend, while bearish traders eye a dip below that level for signs of a retracement.
- Resistance looms at $44.97 and the pivotal $50 mark, while support lies at $41.60 and $39.53.
