Crypto analyst Ali said Nvidia (NVDA) reached a record high of $237.88 on Oct. 2, extending its gain to nearly 14% since Sept. 14 and putting the stock near the upper boundary of its trading channel. He said the move has brought artificial intelligence names back into focus and highlighted two exchange-traded funds tied to the theme.
The first is the Direxion Daily Semiconductor Bull 3X ETF (SOXL), which is designed to deliver three times the daily performance of a semiconductor index. On Ali’s reading of the 4-hour chart, SOXL appears to be breaking out of its channel structure. If support at $150 holds, he said the move could point to $210.
The second is the Roundhill Memory ETF (DRAM), which invests mainly in global memory chip companies. Ali said DRAM is forming an ascending triangle. A close above $64 on the hourly chart could confirm a breakout, with $80 as the level to watch, implying potential upside of about 25%. He added that Nvidia’s rally has pushed the AI sector back into the market spotlight, and he will be watching whether these ETF setups confirm a continuation of the AI trade.
Crypto analyst Ali said in a post on X that Nvidia (NVDA) hit a record high of $237.88 on Oct. 2, rising nearly 14% since Sept. 14.
Ali said the stock is now testing resistance at the upper boundary of its channel and could move on to a $260 target. With the AI sector drawing market attention again, he said he is watching two related exchange-traded funds.
SOXL setup points to a possible channel breakout
The first is the Direxion Daily Semiconductor Bull 3X ETF (SOXL), which is designed to deliver three times the daily performance of a semiconductor index.
On the 4-hour chart, SOXL appears to be breaking out of its channel structure, according to Ali. If support at $150 remains intact, the move could point to $210.
DRAM forms an ascending triangle
The second is the Roundhill Memory ETF (DRAM), which mainly invests in global memory chip companies.
Ali said DRAM is currently forming an ascending triangle consolidation pattern. If it closes above $64 on the hourly chart, that could confirm a breakout, with $80 as the next level to watch. That would imply potential upside of about 25%.
Ali added that Nvidia’s advance has put the AI sector back in the market spotlight. He said he will keep watching whether the technical setups in SOXL and DRAM go on to confirm a continuation of the AI trade.
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