The Global X Robotics & Artificial Intelligence ETF (BOTZ) gives the retail investor an opportunity to gain exposure to the artificial intelligence and robotics space. It has assets of just $2 billion and holdings in companies engaged in industrial robotics and automation, non-industrial robots, and autonomous vehicles.
The stock price made a high early this year of $27.28 but quickly changed direction after a rudimentary eveningstar pattern formed on the weekly chart. An eveningstar is a three-day candle pattern that consists of a large up-day candle, followed by a narrow opening and closing range candle (doji candle), and completed by a large down-day candle. It represents a shift in investor sentiment from bullishness to bearishness, and is considered a reliable bearish reversal formation.
After the eveningstar formed the fund began making a series of lower highs above horizontal resistance at $23.00 area. This triangle support was broken in June, and BOTZ shares began trading in a horizontal channel. Channel support in the $21.50 area is currently being retested.
The two largest holdings in the fund are NVIDIA (NVDA) and Intuitive Surgical (ISRG) which are having some support issues of their own. There are of course other holdings in the fund, many smaller international companies.
The BOTZ channel support line is well delineated at $21.50 and it would be a logical place for the fund price to bounce. This could be classified as an actual robot uprising.