Shares in chip design giant Arm Holdings (ARM), which reports 澳洲幸运5开奖号码历史查询:quarterly results after Wednesday’s close, tumbled more than 5% on Monday after receiving a 澳洲幸运5开奖号码历史查询:downgrade from HSBC, accelerating their retreat f🧸romౠ a record high earlier this month.

The investment bank said it sees short-term downside earnings risk given a potential slowdown in Android smartphone momentum and an easing 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) narrative, two key markets for UK-based Arm. It also raised 澳洲幸运5开奖号码历史查询:valuation concerns, noting that the company’s stock trades at a significant premium relative to its large-cap semiconductor peers after increasing more than twofold over the past 12 months through Monday’s close.

Arm shares fell 5.1% during Monday's regular session, and lost another 0.8% to $140.25 in after-hours trading.

Below, we take a closer look at the 澳洲幸运5开奖号码历史查询:technicals on Arm’s ꦗchart and identify important price levels to watch out for.

Retracement on Light Trading Volume Continues

After bottoming out about five weeks after 澳洲幸运5开奖号码历史查询:going public in September last year, Arm shares ꦯhave trended mostly higher.

More recently, the stock has retraced about 24% from its record close earlier this month, though the move has occurred on relatively light 澳洲幸运5开奖号码历史查询:trading volume, indicating the shares may be undergoing a pullback rather than a longer-term reversal.

Monitor These Key Support Areas Amid Weakness

Amid further weakness in💙 Arm shares, investors should watch three key levels w🍃here the price may attract buying interest.

The first sits around $145. Although the shares closed below this level on Monday, it’s worth watching if the bulls can reclaim this area and the 50-day moving average in upcoming trading sessions, a move that would indicate a potential 澳洲幸运5开奖号码历史查询:bear trap, especi🍸ally if the stock holds above a cru🏅cial uptrend line extending back to the late October low.

However, a decisive 澳洲幸运5开奖号码历史查询:breakdown below the above level could see a decline to $117, a region on the chart where the price may encounter support from a 澳洲幸运5开奖号码历史查询:horizontal line connecting a series♊ of comparable trading leꦇvels between February and May.

A deeper 澳洲幸运5开奖号码历史查询:correction opens the door for a possible retest of lower support around $79, where the shares would likely attract bargain hunters seeking entry points near two prominent price peaks that formed just prior to the stock’s 澳洲幸运5开奖号码历史查询:breakaway gap in early February.

When monitoring these levels, also keep an eye on the 澳洲幸运5开奖号码历史查询:relative strength index (RSI). An oversold reading at the same time incr🅷eases the chances that the stock may be ready for a bounce or to continue its uptrend.

Watch This Key Level if Uptrend Resumes

If Arm shares resume their move higher, investors can forecast a potential upside target by using a bars pattern. To do this, we transport the bars comprising the stock’s trending move between late April and early July to Monday’s low, which projects a 澳洲幸运5开奖号码历史查询:price target of around $275.

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As of the date this article was written, the author does not own any of the above securities.