The XLK Technology Sector ETF has experienced a 6% decline this month due to concerns about the U.S. economy and recent changes in its portfolio. The fund increased its position in Nvidia and decreased its position in Apple back in June, which has impacted its performance.
Despite the recent volatility, the ETF managed to reclaim its 200-day moving average after breaking below it during a global selling rout. Investors are now keeping an eye on key price levels for potential support and resistance.
On the support side, the ETF may find buying interest around $200, just below the 200-day MA. If this level doesn’t hold, the next support level to watch is $194, which is also near an uptrend line dating back to October 2022.
In terms of resistance, the fund could face hurdles around $210 and $218. These levels have historical significance in the chart and may attract profit-taking from sellers.
Overall, investors should stay vigilant amidst potential volatility in the tech sector and monitor how XLK reacts to these important price levels. It’s essential to consider all factors and do thorough research before making any investment decisions.
