Table of Contents
- 40% Trading Profit from SOXL Investment: A Comprehensive Technical Analysis of Nasdaq – Rebound Strategy at the Beginning of Decline with Daily, Weekly, and Monthly Charts
- 40% Return from SOXL Investment: Short-Term Rebound Trading Strategy
- Technical Analysis of Nasdaq – Summary of Monthly, Weekly, and Daily Trends
- Long-Term Investment in SOXL? Well…
- Conclusion – Strict Stop-Loss Lines Recommended, Short-Term Trading Strategy Based on Technical Analysis
40% Trading Profit from SOXL Investment: A Comprehensive Technical Analysis of Nasdaq – Rebound Strategy at the Beginning of Decline with Daily, Weekly, and Monthly Charts
On April 9, the Nasdaq index gained 12.16% in just one day, capturing significant attention. Additionally, SOXL surged 54.79, attracting investor interest. This phenomenon had considerable effects on the market.
This phenomenon began when former President Donald Trump announced a 125% tariff on Chinese products. Simultaneously, he decided to suspend reciprocal tariffs with other countries for 90 days, significantly affecting the global stock markets. Although the stock market plunged due to Trump's trade pressure, it has shown signs of a technical rebound following the news of the suspension.
In this post, I will conduct a technical analysis of Nasdaq focusing on short-term trading cases of SOXL in US stock investment. While the macro environment is important, it is essential to analyze charts for precise investment decisions. It is crucial to carefully observe the current market situation.
40% Return from SOXL Investment: Short-Term Rebound Trading Strategy
When deeply immersed in stock investment, daily activities can become challenging, so I tend to refrain from trading. However, I employ a short-term trading strategy utilizing liquid funds to pursue profit during a declining market.
It was a similar situation this time. As major indices, including Nasdaq and S&P 500, fell more than 20% from their peaks, SOXL caught my attention. However, the retirement savings accounts, which I had consistently bought into, lost all the returns accumulated over two years. Such scenarios remind one always to make careful decisions.
SOXL is a leveraged ETF aiming for three times the returns of the Philadelphia Semiconductor Index. Greater market volatility increases both profit opportunities and risks, necessitating caution in investment. Recently, SOXL fell to the 6–7 dollar range, establishing a low point. At this point, I conducted my first buy in the 7 dollar range. Subsequently, by making incremental purchases in the 8–10 dollar range, I set my average buying price at 9 dollars. As a result, the current return is about 40%.
My personal investment strategy involves considering partial selling at the 18–20 dollar level. Nevertheless, as risks from Trump’s tariffs, US-China trade tensions, and delayed rate cuts remain, a more cautious approach is warranted from a long-term investment perspective. It is vital to make investment decisions considering these variables.
Technical Analysis of Nasdaq – Summary of Monthly, Weekly, and Daily Trends
Daily Chart Analysis – Technical Rebound Underway After Plunge
The daily chart shows a rebound at around 15,600 points, but it is difficult to expect a significant trend reversal before surpassing the SAR and the congestion band around 18,900.
The current MACD is still located below the zero line, and while short-term buying pressure is visible, an increase in trading volume and recovery of technical indicators are essential to gain conviction in the trend.
Weekly Chart Analysis – Clear Signals of Mid-Term Decline Switching
The weekly chart indicates a rise in volatility, dropping to approximately 16,546 at the lower band. The SAR indicator is positioned above the candles, and the MACD demonstrates a dead cross below the zero line, implying mid-term bearishness.
A robust selling pressure is present, with increasing trading volume. Although a short-term rebound seems possible, mid-term trend recovery remains challenging.
Monthly Chart Analysis – Beginning of Decline After Long-Term Rise
Analyzing through the monthly chart, it appears that Nasdaq has entered an adjustment phase following a prolonged upward trend.
Having stayed at the upper Bollinger Band for several months, Nasdaq recently recorded a bearish candle and dropped near the central line, the 20-day moving average. Alongside this, both MACD and Parabolic SAR are signaling a downward transition.
Especially, when the SAR transitions above the candles, it serves as a critical indicator of trend change. Thus, it is necessary to be prepared for adjustments potentially leading down to the 12,000–13,000 points range.
Long-Term Investment in SOXL? Well…
SOXL is suitable for short-term volatility, but in uncertain situations such as the AI semiconductor bubble issue, delayed interest rate cuts, and US-China trade tensions, it is difficult to consider it a fit for long-term investment.
Triple leveraged ETFs are more favorable for technical trading at low points than for buying at high points, and should only be employed when trends are reversing. Additionally, long-term investments should only be considered when an upward trend is certain. Currently, SOXL is likely to hover around the 20–30 dollar range, and due to its leveraged investment nature, if the sideways market persists, there is a risk of gradually diminishing accounts compared to the index being followed.
Thus, careful approaches are necessary.
Conclusion – Strict Stop-Loss Lines Recommended, Short-Term Trading Strategy Based on Technical Analysis
The Nasdaq is showing a technical rebound on the daily chart; however, careful approaches are needed to confirm a trend reversal. The weekly chart distinctly shows a downward trend, indicating the limited potential for mid-term rebounds. Additionally, the monthly chart suggests the beginning of an adjustment phase, making the depth of future declines significant.
Therefore, when considering short-term trading, it is crucial to establish defined stop-loss and take-profit criteria. For long-term investments, it is advisable to confirm the low points after further adjustments before proceeding. Always remember that rigorous risk management is far more important than profit in stock investing.
Summary:
: SOXL short-term profit realization is possible, but the overall flow of the Nasdaq appears to be at the beginning of the decline, with medium- to long-term bearish risks still present.
Make investment judgments rationally, and ensure to target precise timing for trading.
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