Direxion Daily Semiconductor Bull 3X Shares (SOXL) Reversal; A solid uptrend in the ETF

Direxion Daily Semiconductor Bull 3X Shares (SOXL) Reversal; A solid uptrend in the ETF

Direxion Daily Semiconductor Bull 3 X Shares SOXL was trading down Friday, consolidating a recent rise that saw the ETF surge almost 70% since Dec. 28.

The semiconductor sector suffered a steep decline in SOXL last year, which caused it to fall almost 90% in 2022.

SOXL's recent reversal could provide a solid trade for traders with a high risk-reward appetite, paired with a solid and confirmed uptrend.

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SOXL is a triple-leveraged fund that offers 3 x daily leverage on bullish movements across a variety of stocks in the semiconductor sector.

TheETF tracks a number of semiconductor companies through its holdings. Popular companies such as Advanced Micro Devices, Inc AMD make up 5.8% of the fund, and NVIDIA Corporation NVDA is weighted at 7.71%.

Recently, chipmakers have had bullish price action, along with positive movements in the general markets. The S&P 500 and the Nasdaq recently regained the 200 day simple moving average, suggesting that the stock market could be headed higher, possibly bringing an end to the bear market.

It should be noted that leveragedETFs are meant to be used as a trading vehicle as opposed to long-term investments by experienced traders. Leveraged ETFs should never be used by investors with a buy and hold strategy or those with low risk appetites.

The Traders who are bearish on the semiconductor sector can track the Direxion Daily Semiconductor Bear 3 X Shares SOXS.

The SOXL chart: SOXL opened slightly lower on Friday and was trading in an inside bar, with all the price action taking place within Thursday s trading range. The ETF is in a consolidation period and the inside bar indiates is in a period of consolidation.