Direxion Daily Semiconductor Bull 3X Shares
The semiconductor sector has been experiencing a bull cycle, with NVIDIA Corporation
SOXL is a triple-leveraged fund that consists of a variety of stocks in the semiconductor sector. Advanced Micro Devices, Inc makes up 7.03% of the fund, while Nvidia is weighted at 8.81%.
Tech stocks, including chipmaker stocks, have also enjoyed bullish price action recently, matching the positive movements seen in the general markets.
On Friday, the S&P 500
Traders who are bearish on the semiconductor sector can track the Direxion Daily Semiconductor Bear 3X Shares
It should be noted that Direxion's leveraged funds are designed for short-term traders and shouldn't be held for a long period of time.
The SOXL Chart: Like the S&P 500, SOXL was looking to print a reversal candlestick Friday, in the form of a gravestone doji, which may signal the next higher high has a card and a retracement is on the horizon. SOXL's most recent higher low was formed on July 6 at $22.04, and if the uptrend continues, the ETF will print a bullish reversal candlestick above that area on the next dip.
The ETF could also reverse course off the eight-day exponential moving average (EMA) on its next retracement because the indicator has been guiding SOXL higher since July 10. SOXL has become extended from the eight-day EMA, which also indicates a pull back is on the horizon.
The downturn from Friday's high-of-day was taking place on lower-than-average volume, which suggests some bulls are taking profit as opposed to the bears regaining control. Bearish traders want to see big bearish volume come in before feeling confident that SOXL's bull cycle is complete.
SOXL has resistance above at $27.30 and $30.57 and support below at $22.12 and $17.66.
