I’ve been listening to feedback that a number of the Magnificent Seven not qualify for membership, so I believed a fast take a look at them could be useful. I will use weekly charts.
Apple (AAPL): AAPL is coping with attempting to maneuver manufacturing out of China, and this week it shut down its EV program. The latter will in all probability have extra impact on the EV trade than AAPL, however we’ll take care of that after we get to Tesla.
Technically, we’ve got a bearish rising wedge and a PMO detrimental divergence.
Prognosis: AAPL in all probability will not be so magnificent for a minimum of a number of years.
Amazon (AMZN): AMZN suffered mightily throughout COVID, but it surely has had a powerful rally for the final yr. The obvious drawback is that it’ll run into sturdy resistance on the all-time highs of 2021, and at its present price of climb it’ll hit that resistance in just some weeks.
Prognosis: Nonetheless magnificent, however on account of run into long-term resistance.
Alphabet (GOOGL): GOOGL has run into resistance on the 2021 high, and has fashioned a long-term double high. The rising development line from the 2022 low continues to be intact, however there’s a PMO detrimental divergence. If that development is damaged, so can be its magnificence.
Prognosis: Not good at this level. Magnificence is endangered.
Meta Platforms (META): META was organising for a long-term double high, but it surely broke out and is now +28% above that resistance. The issue now’s that the advance from the mid-2023 consolidation is parabolic, and vertical up strikes beg for correction. There may be at the moment a PMO detrimental divergence, however the PMO hasn’t topped but and the divergence could possibly be erased.
Prognosis: Nonetheless magnificent. Be careful for potential correction.
Microsoft (MSFT): MSFT tried to kind a double high mid-2023, but it surely broke out and moved +22% above that resistance. It has fashioned a long-term bearish rising wedge, and there’s a PMO detrimental divergence, however value motion is strongly bullish.
Prognosis: Magnificent however with some bearish undertones.
Nvidia (NVDA): NVDA hit resistance at 500 final yr and consolidated for about six months. In January it broke out and moved over +60% above the resistance at 500. Its largest drawback now’s the parabolic advance from the 2022 lows. As I mentioned earlier than, parabolic up strikes beg for correction.
Prognosis: Essentially the most magnificent of the Seven. Correction is probably going, however magnificence ought to prevail.
Tesla (TSLA): Apple’s latest exit from the EV enterprise is essentially the most dramatic proof thus far of the EV trade and the general public’s disillusionment with electrical automobiles. TSLA is at the moment -50% down from its 2021 all-time excessive, and my opinion is that it isn’t going to recuperate.
Prognosis: Now not magnificent and doubtless is not going to recuperate.
Conclusion: AAPL and GOOGL are fading and, whereas they’re strong companies, could fall in need of magnificence for some years. TSLA is finished for. The remainder are nonetheless magnificent however with some reservations for the intermediate-term. So, Magnificent 5?
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Useful DecisionPoint Hyperlinks:
Worth Momentum Oscillator (PMO)
Swenlin Buying and selling Oscillators (STO-B and STO-V)
Carl Swenlin is a veteran technical analyst who has been actively engaged in market evaluation since 1981. A pioneer within the creation of on-line technical assets, he was president and founding father of DecisionPoint.com, one of many premier market timing and technical evaluation web sites on the net. DecisionPoint focuses on inventory market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and weblog contributor.
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