Is Technology Select Sector SPDR Close to Support?

Published on Friday, 23 November 2012 08:28 Written by TradersHuddle Wire

New York, November 23rd (TradersHuddle.com) - Shares of Technology Select Sector SPDR Fund (NYSE:XLK) ended the trading session close to calculated support at $27.21, a level that will raise the attention of traders looking for an entry point.

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.

Traders wanting to establish a position should pay close attention to Technology Select Sector SPDR's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $31.74 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of Technology Select Sector SPDR Fund closed at $28.39 in the prior trading session.

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.