Bullish on AMD and Nvidia? This Direxion ETF offers 3x leverage on semiconductor stocks

SOXL shares of Direxion Daily Semiconductor Bull 3X rebounded more than 5% last Friday to close the trading session above the 200-day simple moving average (SMA).< /p>

Although the semiconductor sector has seen a sharp decline since March 31, the recent reversal in SOXL could be a solid trading position for investors with a high appetite for risk and the reward. SOXL is a triple-leveraged fund comprised of a variety of semiconductor stocks. Advanced Micro Devices, Inc AMD represents 7.03% of the fund, while NVIDIA Corporation NVDA is weighted at 8.81%.

Tech stocks, including chipmaker stocks, have recently benefited from bullish price action, matching the positive moves seen in general markets. On Friday, the S&P 500 broke strong resistance near $414, suggesting the stock market may be heading higher.

Traders who are bearish on the semiconductor sector can follow the Direxion Daily Semiconductor Bear 3X Shares SOXS.

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The SOXL Chart: After printing a bullish hammer candlestick pattern on Thursday, SOXL rose on Friday to close near the day's high, suggesting higher prices could come on Monday.

The ETF, however, could also trade sideways and print an inside bar pattern on Monday, which would tip bullish for the continuation. Eventually, SOXL should pull back to print at least one higher low, which would confirm a new uptrend and provide a possible strong entry point for traders not already in the position. When SOXL finally returns to the downside, the stock may find support at the 200-day SMA. Traders can then wait for the ETF to print a possible reversal candlestick pattern, such as a doji candle or hammer candlestick pattern, above the zone. If SOXL falls below this level, however, bearish traders can take control. SOXL has resistance above $16 and $17.66 and support below at $14.09 and $12.13.

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