The iShares Semiconductor ETF (SOXX) dropped nearly 3% on Wednesday amid heightened volatility within the chip sector after Monday’s global stock market selloff. This week's decline coincided with a report that 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) darling Nvidia's (NVDA) highly anticipated Blackwell chips would be delayed by at least three months.

Over the last week, the ETF has come under increasing pressure from growing concerns about the health of the U.S. economy and 澳洲幸运5开奖号码历史查询:disappointing earnings from chip giant Intel (INTC), which commands a 2.93% weighting within the fund's portfolio.

On Wednesday, the fund fell 2.8% to close at $199.29, its lowest le𒐪vel since mid-April.

Below, we take a closer look at the SOXX ETF chart, while using 澳洲幸运5开奖号码历史查询:technical analysis to outline important 澳洲幸运5开奖号码历史查询:support and resistance levels to watch out for.

Failed Att🌱empt to Reclaim 200-Day Moving Average

Since topping out last month, the SOXX ETF has undergone a sharp 澳洲幸运5开奖号码历史查询:correction of around 25% on above-average volume, indicating conviction from 澳洲幸运5开奖号码历史查询:institutional investors behind the move.

More recently, the fund has fallen below the closely watched 澳洲幸运5开奖号码历史查询:200-day moving average (MA), with a brief attempt to reclaim the indicator on Wedneဣsday failing after the price closed towards its session low.

Monitor These Important Support Areas

If the fund continues to move lower, investors should monitor two key areas wheꦍre the pric🃏e could attract buying interest.

The first sits around $195, just 2% below Wednesday’s close, This level on the chart could see buyers seeking entry points near a 澳洲幸运5开奖号码历史查询:horizontal line that connects the December 2023 peak and January trough, which also closely align🐭s with Monday’s selloff low.

A 澳洲幸运5开奖号码历史查询:breakdown below this level may lead to a retest of the $179 area, an area where the ETF would likely find support from the July 2023 澳洲幸运5开奖号码历史查询:swing high and January swing low.

Key Resistance Levels to Watch

If buyers reclaim the 200-day MA, it’s worth watching several important price levꦦels on the chart where the fund may encounter selling pressure.

Firstly, an initial attempt at a recovery may run into resistance around $215 near a range of comparable trading levels between late February and early May that roughly align with the Aug. 2 pre-gap low.

A move above this area could see the fund climb to $239, a level where sellers may be happy to 澳洲幸运5开奖号码历史查询:lock in profits near the March and May highs, which currenꦡt sit in close proximity to the downward sloping 50-day MA.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

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