The Technology Select Sector SPDR Fund (XLK) is down 6% this month amid a downturn for t🦹echnology stocks.

The fund has seen a volatile start to August amid concerns about the U.S. economy following several recent reports pointing to a softening of economic activity. XLK’s recent 澳洲幸运5开奖号码历史查询:rebalancing in June, which increased its holding in 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) darling Nvidia’s (NVDA) from around 6% to 19% and reduced its allocation in iPhone maker Apple’s (AAPL) from about 22% to 5%, has also weighed on performance.

The 澳洲幸运5开奖号码历史查询:rebalance means the fund didn’t fully capitalize on Nvidia’s impressive gains in the first half of year but realized a greater portion of its sharp 澳洲幸运5开奖号码历史查询:correction in recent mon🤡ths. Since the June 21 rebalancing, Nvidia has dropped 17%, while Apple has ga💯ined 4%.

Below, we’ll take a closer look at the 澳洲幸运5开奖号码历史查询:technicals on XLK’s chart a𝓀nd identify important price levels that investors will likely be watching.

Fund Reclaims 200-Day Moving Average

Since topping out in early July, the ETF’s price has fallen as much as 20% from its 澳洲幸运5开奖号码历史查询:record high as investors booked profits in mega-cap tech stocks. More recently, the fund broke down below the closely watched 澳洲幸运5开奖号码历史查询:200-day moving average (MA) during last Monday’s global rout but staged a recovery to reclaim the indicator 🌃by Thursday’s market 🅷close.

Amid the possibility for further volatility within the 澳洲幸运5开奖号码历史查询:technology sector, investors should monitor these important 澳洲幸运5开奖号码历史查询:support and resistance levels on XLK’s chart.

Support Levels to Watch

The first key support area to watch sits around $200, currently just below the 200-day MA, where the price will likely encounter buying interest near the 澳洲幸运5开奖号码历史查询:psychological round number and a minor peak that formed in the early part of🗹 the fund’s trending move between April and July.

A failure to hold this level could see the ETF revisit lower support at $194, an area on the chart where investors could look for 澳洲幸运5开奖号码历史查询:entry points near a 澳洲幸运5开奖号码历史查询:horizontal line connecting the December 2023 澳洲幸运5开奖号码历史查询:swing high with comparable lows in April and August. This area also lies in close proximity to an uptrend line stretching back to t▨he October 2022 low.

Resistance Levels to Monitor

Initially, the fund’s price could run into overhead resistance near $210, where sellers could look to take profits around a trendline that links a period of March 澳洲幸运5开奖号码历史查询:consolidation with a minor June pullback and the Aug, 1 pre-gap trading level.

Further bullish upside may drive a move to $218. This area could find resistance around the May peak and the daily high of several trading sessions in late July and early August,💙 with the region also sitting just below the downward sloping 50-day MA.

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