After a plunge from mid May to mid June, the Technology SPDR (XLK) bounced back to the 31 area to reach its first resistance area. First, broken support turns into resistance here. Second, the Fibonacci retracements tools show a cluster in the 31-31.33 area. Notice that these Fibonacci retracements were drawn from the mid May and mid June highs.
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Click this image for a live chart.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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