Some feel assets or charts have memories. If this is true, Tech bulls might be hoping that a certain level is forgotten!
The above chart looks at Tech ETF (XLK) on a monthly basis, since 1998. XLK peaked at the 2000 highs at (1), where a bearish reversal pattern (bearish wick) took place. This monthly pattern ended up being the monthly high before the ETF declined over 80%.
17-years later, XLK finds itself testing the 2000 highs again this month at (2). Tech bulls wish for the New Year… They want this level to be forgotten and see an upside breakout.
Tech bulls would get a caution message if selling pressure would start and support would give way at (2)!
Chart pattern analysis with brief commentary:
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