iShares Expanded Tech-Software ETF Slides Over 30%, Risks $60 Technical Target

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IGV recently traded near $80, well below its 40-week moving average of $106, with technical risk toward $60 if oversold conditions fail to spark a rebound. Software sector ETF has fallen over 30% since November despite analysts’ 19% projected earnings growth for 2026.

1. Technical Analysis Indicates Headwinds

IGV tracked mega-cap tech and Bitcoin closely until coincident peaks in autumn 2025 and has since underperformed both, trading near $80 compared to its 40-week moving average of $106. The ETF’s technical score stands at zero, with downside toward $60 if oversold conditions fail to spark a rebound.

2. Software Sector Decline and Outlook

Software stocks have fallen over 30% since November, fueled by record short selling and concerns over AI disruption despite analysts projecting 19% earnings growth for 2026. Some investors compare the current sell-off to the spring 2025 scare trade and view this pullback as a potential buying opportunity.

Sources

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