February 20, 2026

 

(A DEEP DIVE INTO THE TECH-SOFTWARE SECTOR ETF CHART)

 

February 20, 2026

 

Hello everyone

 

We all know that tech, especially software stocks, has been really punished of late.

So, let’s look at the Tech-Software Sector ETF (IGV) chart to see where the sector is sitting now.

I have shown here a monthly chart of the Tech-Software sector ETF (IGV). 

You can see here that I have underlined the support zone (going back to mid-2023), which has been tested several times, but always respected. 

The monthly candle, thus far, has not touched that support line, but of course, it is identified as being in the support zone area.  This shows that this level has become a well-recognized “zone of interest” or a psychological marker and confirms to investors that buying demand still exists at this price. 

As you can see, every time a monthly candle touched the support line, it bounced off, and the subsequent move was an eventual higher high.   

I will also point out that this retracement and support zone was previously a resistance area in the 2021/2022 years span.  So, this extended period of retracement and testing of support is a healthy move within the overall cycle in this sector. 

 

 

You can see in this monthly chart that I have overlaid the Fib. Retracements, which show the sector has shown respect for the 0.618Fib zone.

 

 

Now, we move on to the weekly chart of (IGV).  Same ETF, but a different view. You can see from this lower time frame that this sector is very oversold when you look at the momentum indicators RSI and MACD.  Both are at levels not seen since around mid-2022. 

This suggests we are probably close to a bottom in this sector and could rally quite significantly within the next month.   Keep your eye on software stocks over the next couple of weeks. (HubSpot, Microsoft, ServiceNow, Autodesk)

 

 

Now, I want to turn our focus to the Precious Metals sector, particularly gold and silver. 

Price action over the last few days is suggesting we could get a rally in the gold and silver prices.

On the Daily chart shown here, you can see that the iShares Silver Trust (SLV) has respected the 0.5% Fib.  You can also see that the momentum indicators – RSI and MACD – have unwound their overbought status.

On the second chart, I have shown the projected Fib. Price levels.  The first target is the 0.382 Fib at around $91.  Then we could target around $94, and then in extension around $99. 

But one step at a time. 

This evening (my time), as I am typing this, we have touched $81 in (XAGUSD)

 

 

 

 

Similarly, with gold, you can see the shiny metal has a great zone of support between the 0.5 Fib and the 0.382 Fib.  We could target the 0.618 Fib at around $514 and change in the (GLD) as shown on the next chart.

 

 

 

Geopolitical conflicts are once again front and centre.  The U.S. is positioned ready to strike Iran at any time.  Though President Trump has given Iran 10-15 days to come to some form of agreement, we know that Mr. Trump is known for his unpredictability, and so, a strike could happen well before that time is up.  Everything seems to happen on the weekend, so my best guess is this weekend or next.

And a strike, if it does occur, could send the metals much higher.

I would recommend buying (SLV) and (GLD) using strict management rules (stop losses).

AND/OR/ (Or just observe)

You could enter these option trades.  (And use stop losses)

(SLV) 75/80 bull call spread.

Sell a call at 80

Buy a call at 75

Expiry:  May 15, 2026

Max Profit = 358

Max Loss = 142

Cost = $1.42

(GLD) 465/470 bull call spread.

Sell a call at 470

Buy a call at 465

Expiry = May 15, 2026

Max Profit = 280

Max Loss = 220

Cost = $2.20

The information provided here represents one contract.  It is your choice how many contracts you enter.  (Just make sure you can sleep at night).

 

 

QI CORNER

 

 

SOMETHING TO THINK ABOUT

Ryan Lemard (Founder & CEO), PhD. Financial Econometrics

 

 

 

Cheers

Jacquie