BUY/SELL GOLD & SILVER
All Metal Quotes
NEW YORK, June 3 (Reuters) – The software sector has been on a wild ride. After tumbling more than 37% from its September 2025 peak to its April lows on fears AI could wreck their business models, the group has bounced back sharply. Chart watchers are now asking, can it keep climbing?
The iShares Expanded Tech-Software Sector ETF (IGV), a broad measure of the space, recently posted its biggest three-day gain since October 2001. Since bottoming on April 10, it surged roughly 44%, closing at $107.70 after a 6% jump on Monday alone, according to data supplied by LSEG. That move pushed the ETF back into positive territory for 2025, up about 1.9% year to date.
For context, IGV is a better gauge of the broader software sector than the S&P 500 Software & Services index, which is heavily skewed by Microsoft — a stock that still sits nearly 5% lower on the year. Microsoft makes up more than half of that index but less than 10% of IGV, giving the ETF a wider view of the sector’s health.
That said, the charts are flashing a cautionary signal. The ETF has run into a key resistance zone — a price range between roughly $107.60 and $108.60 — defined by Fibonacci retracement levels. Think of these as natural “speed bumps” where markets often pause or pull back after a big move. After such a rapid climb, some consolidation would not be unusual, and on Tuesday, IGV fell 2.8% to end at $104.73.
The broader recovery story should stay intact as long as IGV holds above its 200-day moving average near $99 and the uptrend line from the April low around $95. A decisive close above the current resistance zone would open the door to the next targets: a resistance line near $116, and ultimately a run back toward the record intraday high of $117.99.
What the chart shows:
Decline of more than 37% from September 2025 high to April 10 low — the weakest level in over two years
Biggest three-day rally since October 2001, had IGV up ~44% from its April closing low, but still ~8.6% below its all-time closing high
Key resistance zone at $107.60–$108.60; a break above it targets $116 and the record high near $118
(Daily markets commentary from Reuters analysts on the signals financial charts are sending – and what they might mean.)
Terence Gabriel is a Reuters market analyst. The views expressed are his own. Editing by Burton Frierson and Rod Nickel
We appreciate your feedback
|
Your Privacy Choices
© 2026 Kitco Metals Inc.
Leave a Reply