USA Tech Stocks reach new low

Source: Dukascopy Bank SA


In the aftermath of facing the resistance of the 200-day simple moving average, the USA Tech Stock index started a decline from the 15,275.00 level. In addition, a channel down pattern was revealed, which had guided the index since November. By May 6th, in the aftermath of the Federal Reserve's latest policy announcements, the stocks declined below the March support zone and booked a new low level by touching the 12,500.00 mark.

From a technical analysis perspective, a continuation of the decline would have to pass the 12,500.00 mark, before approaching the combined support of the 12,000.00 mark and the lower trend line of the channel down pattern. If the pattern holds, the stocks could trade sideways or attempt to pass the resistance of the 13,000.00 level and the zone above it.

However, a recovery would face resistance at 13,000.00 and 13,500.00. Higher above, note the 50-day simple moving average near 14,000.00 and the upper trend line of the channel pattern near 14,500.00.
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