Benzinga
Published Mar 27, 2024 18:18
Updated Mar 27, 2024 19:41
Technical Analysis: Spear Alpha ETF Consolidation Signals Next Break Ahead As Nvidia Trades Near All-Time Highs
Benzinga - by Melanie Schaffer, Benzinga Editor.
Spear Alpha ETF (NASDAQ: SPRX) was trading flat on Wednesday, continuing to trade sideways within a tight range between about $22.60 and $24.50 on decreasing volume.
The actively managed fund provides exposure to various stocks falling under the themes of enterprise digitalization, automation and robotics, artificial intelligence (AI), environmental focus and decarbonization, photonics and additive manufacturing and space exploration. The fund has outpaced Cathie-Wood's flagship Ark Innovation ETF (ARCA: ARKK), with the former rising about 3.6% year-to-day, while ARKK has dropped 4.24% over the same time period.
Read Next: As AI Continues To Dominate Headlines, Copper's Critical Role Comes Into Focus
Trending: Crypto Trader Used This Strategy To Avoid 2021 Bitcoin Crash 'From $58K To $28K In A Matter Of Weeks'
Recently, some of the stocks within the fund have been trading within reach of their all-time highs, indicating investors remain increasingly bullish on the companies the fund holds. NVIDIA Corporation (Nasdaq: NVDA) surged 85% this year and is the largest holding within the fund, weighted at 10.88%.
Similarly, Zscsaler, Inc (NASDAQ: ZS), the second largest holding within SPRX, weighted at 10.2% skyrocketed 193% between May 3, 2023, and Feb. 8, 2024, before beginning to retrace.
For investors, particularly those who believe in the power of diversification, SPRX holds many other popular stocks, including Advanced Micro Devices, Inc (NASDAQ: AMD), weighted at 7.84%, Snowflake, Inc (NYSE: SNOW), weighted at 7.01% and Shopify, Inc (NYSE: SHOP), weighted at 4.39%.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The SPRX Chart: After reaching a new all-time high of $25.66 on Feb.12, SPRX entered into a downtrend, retracing about 11.96% between that date and March 19. On Monday, SPRX negated the downtrend by forming a higher low above the most recent low of $22.59 and on Wednesday, the fund retested that level and support and bounced upward.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read the original article on Benzinga
Written By: Benzinga
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.