Has the 83% decline in $SOXL already played out?
It closed at 57.22 on Nov. 9, after rebounding from 41.32 intraday. That long lower wick marked 38.81 as the low that started this move. I’m bullish, with a target of 89.25.
It closed at 40.77 on Nov. 5, on volume 6.5 times the average of the previous 20 days. Panic selling was concentrated and cleared out that day. It closed at 45.92 the next day, then traded between 43 and 47 for three days without breaking below 40.77 again.
The daily RSI is only 37, still in weak territory, but the price has already risen more than 40% from the low. This combination looks more like the start of a rebound after oversold conditions than a continuation of the decline.
The Bollinger Band width is 100.6%, at the 100th percentile recently, with the bands stretched to the limit. ATR is about 20.4%, so daily volatility remains extreme. With volatility this wide and the price recovering from a lower wick, once a direction is chosen, the move won’t be squeezed away by narrow bands.
The MA20 is at 72.65 and the MA60 at 111.95; the moving averages are still bearishly aligned.
At 56.2, the current price is well below the MA20. The first hurdle for a rebound is the moving-average resistance near 72.65, while 89.25 is the structural endpoint at the 12-day high.
SOXX rose 7.49% on its most recent trading day, AMD gained 13.26%, and AVGO rose 8.78%—the semiconductor sector is broadly recovering. NVDA fell 4.27% over the same period, making it the only major peer weighing on the sector.
SOXL is a 3x leveraged bullish fund that resets daily. With the sector up just over 7%, it magnified the move into a 25.53% intraday gain.
The volume ratio is 1.0, and trading volume has returned to normal. This suggests that the 6.5x volume on Nov. 5 was a one-day event, not sustained heavy selling. After reclaiming the 54.98 MA20, the path toward 89.25 is what to watch next.
#SOXL
It closed at 57.22 on Nov. 9, after rebounding from 41.32 intraday. That long lower wick marked 38.81 as the low that started this move. I’m bullish, with a target of 89.25.
It closed at 40.77 on Nov. 5, on volume 6.5 times the average of the previous 20 days. Panic selling was concentrated and cleared out that day. It closed at 45.92 the next day, then traded between 43 and 47 for three days without breaking below 40.77 again.
The daily RSI is only 37, still in weak territory, but the price has already risen more than 40% from the low. This combination looks more like the start of a rebound after oversold conditions than a continuation of the decline.
The Bollinger Band width is 100.6%, at the 100th percentile recently, with the bands stretched to the limit. ATR is about 20.4%, so daily volatility remains extreme. With volatility this wide and the price recovering from a lower wick, once a direction is chosen, the move won’t be squeezed away by narrow bands.
The MA20 is at 72.65 and the MA60 at 111.95; the moving averages are still bearishly aligned.
At 56.2, the current price is well below the MA20. The first hurdle for a rebound is the moving-average resistance near 72.65, while 89.25 is the structural endpoint at the 12-day high.
SOXX rose 7.49% on its most recent trading day, AMD gained 13.26%, and AVGO rose 8.78%—the semiconductor sector is broadly recovering. NVDA fell 4.27% over the same period, making it the only major peer weighing on the sector.
SOXL is a 3x leveraged bullish fund that resets daily. With the sector up just over 7%, it magnified the move into a 25.53% intraday gain.
The volume ratio is 1.0, and trading volume has returned to normal. This suggests that the 6.5x volume on Nov. 5 was a one-day event, not sustained heavy selling. After reclaiming the 54.98 MA20, the path toward 89.25 is what to watch next.
#SOXL