Technology Stocks Testing Highely Influential Dual Support
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Today’s technology stocks make the world run. The tech sector and select large-cap stocks have led the broader bull market for nearly 14 years.
So when they are weak, investors should take note!
Today’s chart takes a “weekly” view of the S&P Technology Sector ETF (XLK).
As you can see, price hit resistance at last year’s highs, potentially forming a double top.
And now it appears that XLK is testing a very important lateral price support level.
Support is support until broken!!!
XLK has slightly breached that level and needs to rally back to retake it soon.
Should it break, this increases the odds that a double top is in play… with a deeper decline.
(Click on image to enlarge)
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It suggests an interesting development in the world of technology stocks. It implies that technology stocks are currently undergoing a critical phase where they are being supported by two significant factors or forces, which could be fundamental and technical factors, market trends, or other influential aspects.