Tickers discussed: FB AAPL AMZN MSFT GOOGL NFLX NVDA
The post discusses key trade locations on FAAMG names plus NFLX and NVDA. Key levels and trading locations are provided, along with timely commentary to keep you on the right side of the trade.
Rotation
On Tuesday we saw a change of character in the Q’s with significant under performance as traders migrated to cyclicals. If this rotation continues we may see further moves away from mega -cap tech and software names as traders flock to the under performers. If so, tech will likely remain soggy or possibly get downright bearish. As it stands now, most of the FAAMG names are testing their 60 min uptrend lines and / or first support. Much lower and 60m sell signals will be triggered. Although these potential sell signals are signs of a deteriorating tech sector or loss of short-term market leadership, longer term or longer time frame traders don’t have immediate worries. These names, aside from NFLX, remain in up trends on the daily charts. Even so, who wants to give back embedded profits if a pull back is emerging and gets underway? As I often say, time frame is everything. Whether one tries to game a tactical pull back or ride out dips is dependent on your time frame and objectives. Anyhow, as market leaders, this sector bears close attention in the coming sessions. It may be something or a false alarm…time will tell.
FAAMG’s in Focus
$FB
Facebook has been a standout over the past couple of weeks as it plumbs all time highs. As you can see, price is sitting on it’s 60m uptrend line and first support at $232.50. A break below puts it on a 60min sell signal with a quick move to $228 favored. Below $228 would target a move to the gap at $222.50. Longs should keep stops tight and watch that trend line. Remember, time frame is everything. Longer term holders have no immediate worries. That said, daily time frame signals start with 60min signals. Immediate concern is averted with a hold of $232.50
$AAPL
After briefly punching through $320 today, price quickly retreated to test $316. A break below favors a move to $313. Below $313 opens up path to $302. One thing i noticed that I failed to identify is a small gap between around $310 – 307. That would be an intermediate target. Price needs to take out $320 and hold it for higher prices. I’d expect hardened dipsters to step in at $302 for a vigorous defense of $302 if price makes it that far.
$AMZN
I’ve been telling our crew to be careful on this name. Typically after a breakout to see price come back into the prior trading range is bearish. It targets the bottom of the range down at $2275. I would not want to see price break below the trend line at $2415ish. If price recaptures $2450, problem solved.
$MSFT
$186.50 has been a problem for 2 weeks. Now price lost a ledge of support at $183 and has moved into a thin zone of price / volume support. Price is now set to test the 60min trend line. Support is support until / unless broken. To my eye $180.50 is a key spot. Watch carefully to see if buyers step in. If they don’t, here comes $176.
$GOOGL
Simple ( not necessarily easy ) set up. If $1410 holds its a routine back test of the breakout. If it doesn’t, then it looks like a failed breakout and lower prices would be favored. Focus on $1410. Its the key level here.
BONUS COVERAGE
$NFLX
Price broke down from a bearish rising wedge and divergent high. The 20ema gave way without a fight. Now price seems destined for a 50ema test at $410. A move below $410 would likely favor a back test of the breakout at $380. $380 would be a place for an objective, low risk to try a long. I suspect you’ll have a lot of company at that location. At least a healthy bounce would be favored if price made it that far.
$NVDA
Price has carved out a potential island topping structure after gapping up last week. What would trigger the formation would be a gap down from present levels. The gaps on either side of the price cluster form the “island”. THe trade would be to then get short against $348 or so. $325 looks like a logical first target. Remember, no trigger , no trade. Here at the bottom of the box is a low-risk long if you’re bullish. Your target is the top of the box at $362.50.
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