Investors seeking momentum may have Technology Select Sector SPDR ETF (XLK Quick QuoteXLK - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XLK are up approximately 44.5% from their 52-week low of $119.04/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

XLK in Focus

The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The expense ratio is 0.12%.

Why the move?

Nationwide COVID-19 lockdowns in Europe once again stirred fears about further spread of infections . New restrictions beyond the continent weighed on the broader market.By now we all know, internet and tech stocks are pandemic winners as these have less to do with human contact. The coronavirus scare favored the online retailing industry as any kind of lockdown and self-imposed quarantine boost demand for online shopping and other kinds of Internet activities. This explains why the tech ETF XLK gained on Friday.

More Gains Ahead?

The fund has a positive weighted alpha of 41.01. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.