Shares in chip design giant Arm Holdings (ARM), which reports 澳洲幸运5官方开奖结果体彩网:quarterly results after Wednesday’s close, tumbled more than 5% on Monday after receiving a 澳洲幸运5官方开奖结果体彩网:downgrade from ✃HSBC, accelerating their retreat from a record high earlier this month.

The investment bank said it sees short-term downside earnings risk given a potential slowdown in Android smartphone momentum and an easing 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) narrative, two key markets for UK-based Arm. It also raised 澳洲幸运5官方开奖结果体彩网:valuation concerns, noting that the company’s stock trades at a significant premium relative to its large-cap semiconductor peers after increasing more than twofold over the past 12 months through Monday’s close.

Arm shares fell 5.1% during Monday's regular session, and lost another 0.8% to $140.25 in after-hours trading.

Below, we take a closer look at the 澳洲幸运5官方开奖结果体彩网:technicals on Arm’✱s chart and identify important price levels to watch out for.

Retracement on Light Trading Volume Continues

After bottoming out about five weeks after 澳洲幸运5官方开奖结果体彩网:going public in September last year, Arm shares have trended ꦿmostly higher.

More recently, the stock has retraced about 24% from its record close earlier this month, though the move has occurred on relatively light 澳洲幸运5官方开奖结果体彩网:trading volume, indicating the shares may be undergoing a pullback rather than a longer-term reversal.

Monitor These Key Support Areas Amid Weakness

Amid further weakness in Arm shares, investors should watch three key levels where the price may attract bꦚuying interest.

The first sits around $145. Although the shares closed below this level on Monday, it’s worth watching if the bulls can reclaim this area and the 50-day moving average in upcoming trading sessions, a move that would indicate a potential 澳洲幸运5官方开奖结果体彩网:bear trap, especially if the stock holds above a cruci♋al uptrend line extending back to the late October low.

However, a decisive 澳洲幸运5官方开奖结果体彩网:breakdown below the above level could see a decline to $117, a region on the chart where the price may encounter support from a 澳洲幸运5官方开奖结果体彩网:horizontal line connecting a series 🌸of comparable trading levels between February and May.

A deeper 澳洲幸运5官方开奖结果体彩网:correction opens the door for a possible retest of lower support around $79, where the shares would likely attract bargain hunters seeking entry points near two prominent price peaks that formed just prior to the stock’s 澳洲幸运5官方开奖结果体彩网:breakaway gap in early February.

When monitoring these levels, also keep an eye on the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI). An oversold reading at the same time in💜creases the chances that the stock ma🐠y be ready for a bounce or to continue its uptrend.

Watch This Key Level if Uptrend Resumes

If Arm shares resume their move higher, investors can forecast a potential upside target by using a bars pattern. To do this, we transport the bars comprising the stock’s trending move between late April and early July to Monday’s low, which projects a 澳洲幸运5官方开奖结果体彩网:price target of around $275.

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As of the date this article was written, the author does not own any of the above securities.