The VanEck Semiconductor ETF (SMH) remains in the spotlight on Wednesday after tumbling more than 7% yesterday to register its largest daily percentage decline since March 2020 amid a broad-based selloff in chip stocks. The top-weighted stock in the fund, 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) darling Nvidia (NVDA), led the sell-off, slumping nearly 10%, while other leading chipmakers in the ETF’s 澳洲幸运5开奖号码历史查询:portfolio, including Intel (INTC), Marvell Technology (MRVL) and Micron (MU), all dropped by around 8%.

The chips sector has seen significant gains over the past year, as AI’s widespread adoption bolsters demand. 澳洲幸运5开奖号码历史查询:Volatility across the group has increased in recent trading sessions after Nvidia reported earnings that topped Wall Street estimates but showed that 澳洲幸运5开奖号码历史查询:growth is slowing.

Below, we’ll take a closer look at the ETF's chart and use 澳洲幸运5开奖号码历史查询:technical analysis to identify important levels to watch out fo🍬r amid increasing price fluctuations in c🔯hip stocks.

Recovery Stalls at 50-Day Moving Average

Since forming a 澳洲幸运5开奖号码历史查询:double top in June and July, the fund’s price suffered a significant 澳洲幸运5开奖号码历史查询:correction before stag♏ing a relief rally from the closely-watched 200-day moving average (MA).

However, more recently, investors resumed selling on a retracement to the 澳洲幸运5开奖号码历史查询:50-day MA, with Tuesday’s drop taking place on the highest daily 澳洲幸运5开奖号码历史查询:trading volume since early August, pointing to convict🍨ion behind the move from larger market participants.

Aꩵfter falling 7.5% on Tuesday, S🀅MH was down another 1.4% to $222.00 in premarket trading Wednesday at around 7:15 a.m. ET.

Monitor These Key Chart Levels

Looking ahead, invest꧙ors should eye four key price levels on the ETF’s 🐭chart that could prove pivotal if weakness across the chip sector continues. 

The first sits around $217, a level on the chart where the fund could find initial support near the March pullback low, which also currently closely align🍎s with the rising 200-day MA and a range of trading activity positioned near last month’s low.

A 澳洲幸运5开奖号码历史查询:breakdown below this level could see the ETF’s price decline to the $200 area, where it may encounter buying interest around the prominent April and August troughs. Last month’s low marks a technically important level, given the fund’s significant intraday reversal from this chart region.

The next lower price level to watch lies at $176, a location where the ETF could attract support from the December high that formed early in the stock’s up-trending move from October to March.

A more protracted correction may see the ETF revisit lower support around $161. This area could entice longer-term 澳洲幸运5开奖号码历史查询:buy-and-hold investors seeking 澳洲幸运5开奖号码历史查询:entry points near a range of comparable trading levels on the cha�꧃�rt between July and December last year.

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