FAAMG Technical Update Flashing Yellow

Tickers discussed: FB AAPL AMZN MSFT GOOGL

The post discusses  key trade locations on FAAMG names.  Key levels and trading locations are provided, along with timely commentary to keep you on the right side of the trade.

View from above – Micro cracks forming

Starting to see some micro cracks in the FAAMG complex. Several divergent highs / double top looks with price at / near the highs with both RSI and PPO at lower levels. THese divergences are not sell signals in and of themselves but they are cautionary and traders should be on guard for a potential trend change.

As we’ve mentioned many times, these 5 companies are 20% + of the entire market. As FAAMG goes, to a large extent the market goes at the index level. Keep them in your chart list even if you don’t trade them.

FAAMG’s  in Focus

$FB 60 Min

Price at / near the top end of a $16 trading range. A break either above or below the range targets a $16 move. The problem lies in the declining momentum and RSI. Could be a pause that refreshes or the start of something more sinister. RSI and PPO need to turn up to support a breakout.

$AAPL   60 min

Price priting ATH’s while a sharp bearish divergence prints in RSI and PPO.  THis is a very weak set up.  These divergences can be burnt through but traders can’t hang there hat on that possibility. Stay vigilant if loaded long.

 

$AMZN  60 min

Double bottoms with bullish divergences usually offer great risk / reward.   This is the same set up in reverse. Steep bearish divergences at the second peak is a very weak look. Stay on your toes. A PPO bear cross would be a bearish development and favor lower prices.

 

$MSFT   60 min

Not a perfect double top look, but fits in with the theme of other charts. Bearish RSI / PPO looks. Be wary if you see a PPO bear cross.

$GOOGL   60 min

A better RSI / PPO posture here. Price needs a pop and hold of $1465 to open the door to $1500. A rejection here sends price lower to $1440 and possibly $1410.

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