Quarterly Outlook
Equity outlook: The high cost of global fragmentation for US portfolios
Charu Chanana
Chief Investment Strategist
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Technical Update - Amazon, Apple, Meta and Tesla
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Amazon set to test key support around 86. A close below could pave the road to 67
Apple closing back below falling trendline indicates underlying negative sentiment
Meta testing key resistance at around 123.50
Tesla confirming downtrend looking at $110.
Amazon is set to test short-term support at around 86.14 and drop to key strong support at around 82. If Amazon drops to around 82 will RSI on weekly chart break below its rising trendline indicating lower levels. And if that scenario plays out (where Amazon closes below 82) there is no strong support until around 67.
For Amazon to reverse the short-term bearish picture a close above 103.80 is needed. But it would require a close above 121.35 to reverse the medium-term bearish trend.
Apple. Several times Apple has broken the upper falling trendline only to close back below highlighting the falling trend. RSI showing negative sentiment supports this bearish picture.
Apple seems set to test the key support at around 134.37. For Apple to reverse the bearish picture a close above 153.60 is minimum requirement. A close above 157.35 would confirm an uptrend – and that is not really in the cards as it currently looks.
If Apple drops to close below 134.37 next support is at around 129 and 118-105
For Apple to reverse both the short- and medium-term downtrend a close above 157.50 is required.
Meta (Facebook) has bounced quite strongly since October lows and has tested the key resistance at around 123.53 a couple of times. A daily close above could give energy to resistance around 137.84.
RSI is showing positive sentiment after closing above 60 earlier this month indicating we could see a break of the resistance and a move higher.
If Meta can close above 137.84 there is room up to 170 level.
However, the resistance at 137.84 could be a tough level to break so if Meta slides back to close below 113 selling pressure is likely to resume pushing Meta towards October lows.
Tesla performed a lower close yesterday further confirming its down trend both short-and medium term. Adding to the bearish picture RSI closed below its rising trendline strongly indicating lower levels ahead for Tesla.
Tesla is currently below its 200 weekly SMA on its way to next support is at around 154.50. That support is not very strong, however, and further downside is in the cards going into 2023 to around 118-110.
To reverse the downtrend on the short-term a close 200 below is needed. But to reverse the medium-term down trend Tesla must close above 237.40.
RSI divergence explained: When the price of an instrument is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend
Author is holding a short position in Tesla
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