New York, July 30th (TradersHuddle.com) – Shares of Technology Select Sector SPDR Fund (NYSE:XLK) are trading very close to calculated resistance at $26.88 with the current price action closing at just $25.81 placing the stock near levels that make it difficult to buy.
Technology Select Sector SPDR Fund (NYSE:XLK) seeks to provide investment results that correspond to the price and yield performance of the Technology Select Sector of the S&P 500 Index. The Index primarily consists of companies involved in industries, such as computers and peripherals, software, diversified telecommunication services, communications equipment, semiconductor and semiconductor equipment, Internet software and services, information technology services, electronic equipment, instruments and components, wireless telecommunication services and office electronics. The Fund utilizes a passive or indexing investment approach to attempt to approximate the investment performance of the Index.
Technology Select Sector SPDR’s current stock range is defined by current calculated support defined at $24.34 and by the resistance level at $26.88, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.
Traders don’t have a clear entry point for Technology Select Sector SPDR, as the stock is well above support, however, as the stock pulls back towards $24.34 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $26.88 then traders will get an opportunity to enter Technology Select Sector SPDR stock by establishing a position as the stock moves to a higher range.