The iShares Semiconductor ETF (SOXX) dropped nearly 3% on Wednesday amid heightened volatility within the chip sector after Monday’s global stock market selloff. This week's decline coincided with a report that 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) darling Nvidia's (NVDA) highly anticipated Blackwell chips would be delayed by at least three months.

Over the last week, the ETF has come under increasing pressure from growing concerns about the health of the U.S. economy and 澳洲幸运5官方开奖结果体彩网:disappointing earnings from chip giant Intel (INTC), which commands a 2.93% weighting within the fund's portfolio.

On Wednesday, the f𒊎und fell 2.8% to close at $199.29, its lowest level since mid-April.

Below, we take a closer look at the SOXX ETF chart, while using 澳洲幸运5官方开奖结果体彩网:technical analysis to outline important 澳洲幸运5官方开奖结果体彩网:support and resistance levels to watch out for.

Failed Attempt to Recꦺlaim 200-Day Moving Average

Since topping out last month, the SOXX ETF has undergone a sharp 澳洲幸运5官方开奖结果体彩网:correction of around 25% on above-average volume, indicating conviction from 澳洲幸运5官方开奖结果体彩网:institutional investors behind the move.

More recently, the fund has fallen below the closely watched 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA), with a brief attempt to reclaim the indicator o🎶n Wednesday failing after the price closed towards its session low▨.

Monitor These Important Support Areas

If the fund continues to move lower, investors s🐭hould monitor two key areas where the price could attract buying interest.

The first sits around $195, just 2% below Wednesday’s close, This level on the chart could see buyers seeking entry points near a 澳洲幸运5官方开奖结果体彩网:horizontal line that connects the December 2023 peak and January trough, which also closely aligns with Monday’s sellof🍸f low.

A 澳洲幸运5官方开奖结果体彩网:breakdown below this level may lead to a retest of the $179 area, an area where the ETF would likely find support from the July 2023 澳洲幸运5官方开奖结果体彩网:swing high and January swing low.

Key Resistance Levels to Watch

If buyers reclaim the 200-day MA, it’s worth watching several impoᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚrtant 🍷price levels on the chart where the fund may encounter selling pressure.

Firstly, an initial attempt at a recovery may run into resistance around $215 near a range of comparable trading levels between late February and early May that roughly align with the Aug. 2 pre-gap low.

A move above this area could see the fund climb to $239, a level where sellers may be happy to 澳洲幸运5官方开奖结果体彩网:lock in profits near the March💧 and May highs, which curren🦹t sit in close proximity to the downward sloping 50-day MA.

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