Cloudflare’s 15% Rebound Fades as Software ETF Hits Key Resistance
Cloudflare surged about 15% from its Feb. 23 trough but ended the week in negative territory after the iShares Expanded Tech-Software Sector ETF stalled at a key Fibonacci resistance near 88. Broader software names rolled over, and Adobe shares plunged more than 25% year-to-date following earnings and a surprise CEO succession.
1. Software Sector Rebound Fades
After climbing about 15% from the Feb. 23 low to last Friday’s peak, the iShares Expanded Tech-Software Sector ETF encountered strong resistance and reversed, leaving the group largely in negative territory this week.
2. Cloudflare’s Performance
Cloudflare shares rose roughly 15% off the trough before slipping back into the red, reflecting investor caution and lack of follow-through buying in software names.
3. Technical Resistance at Fibonacci Level
The ETF stalled near 88, a key Fibonacci retracement level that prompted short sellers to re-enter positions and capped further upside across software stocks.
4. Adobe’s Impact on Sentiment
Adobe’s shares, down over 25% year-to-date following recent earnings and an unexpected CEO succession, served as a cautionary signal that AI-driven narratives have yet to translate into sustained growth or margin gains.