SOXL Watching for Bounce at Resistance

Direxion Daily Semiconductor Bull 3x SharesArca

Description

⋅ Jan 22, 2023 6:28 AM

On the 15M chart, SOXL and price are approaching the resistance zone at 13- 14.5 While it is possible that resistance could break,

the pattern of the past two months is that it will not. Accordingly, instead, I will watch for a reversal bounce off resistance

for a swing trade short to the downside targeting the point of control line ( dark green ) inside the green support zone as the final

target with the anchored VWAP ( black line now at 9.25 with the first target being the VWAP ( black line ) and the second target

one standard deviation below VWAP ( light green line ); Overall taking off one-third of the position at each target and

expecting 30% overall over about two weeks. An alternative is put options with 4 weeks expiration at $14.00 and another

is to take a long trade on the inverse ETF SOXS.

Comments

elenaec

⋅ Jan 23, 2023 5:17 PM

Is it the right moment to short soxl here ????? and long soxs ? thank you , you had a great analysis so far

AwesomeAvani

⋅ Jan 25, 2023 1:17 AM

@elenaec, SOXS is already reversed and heading up check tradingview.com/chart/DFkQVEdC/?symbol=AMEX:SOXS
use a 30 to 90 minute frame to eliminate " noise" enter after confirmation. I am already in. Bearish ETFs especially helped today
by the general market downturn. Same maneuver can be done with several other 3x leveraged ETFs and their inverses.

AwesomeAvani

⋅ Jan 25, 2023 1:28 AM

@elenaec, SOXL is consolidated in the top of the resistance zone and preparing to drop. SOXS rose 3.1% today. see other reply.

JoeChampion

⋅ Jan 23, 2023 5:51 AM

Great job, keep them coming mate