Technical Update - US Big Techs looking weak. Apple, Amazon, Meta, Nvidia, Alphabet and Microsoft Technical Update - US Big Techs looking weak. Apple, Amazon, Meta, Nvidia, Alphabet and Microsoft Technical Update - US Big Techs looking weak. Apple, Amazon, Meta, Nvidia, Alphabet and Microsoft

Technical Update - US Big Techs looking weak. Apple, Amazon, Meta, Nvidia, Alphabet and Microsoft

Equities 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Apple is back below 55 daily SMA after being rejected at its upper falling trendline. RSI failed to close above 60 threshold i.e., still showing negative sentiment. Key support at around 134.37 seems likely to be tested. A close below will confirm down trend on short-, medium- and longer term.
Next support will be at 129 and strong support at around 118.40. To reverse this bearish view a close above 157.50 is needed.

 

Source all charts and data: Saxo Group

Amazon is on course to test short-term support at 82 i.e., lows from earlier this month (November). RSI is negative with no divergence supporting the bearish view.
The 82 support is not strong and Amazon could test the key support at around 82 shortly.
A close below there is no strong support until around 67.20.
There is RSI divergence on weekly but if RSI closes below its lower rising trendline that could be challenged and eventually traded out.
For Amazon to reverse this down trend short-term a close above 121.32 is needed. To reverse it medium term a close above

Meta bounced from heavy selling end-October but has so far failed to close the gap up to 123.53. Meta needs to close above that level to gain upside momentum i.e., trend is still down and selling pressure is likely to return. If Meta closes the gap i.e., closing above 123.53 there is resistance at resistance at around 138. RSI showing negative sentiment is supporting that picture.

We have to go all the way back to 2015-2016 to have seen price levels like the current ones in Meta. Meta bounced from support at around 90 and a break below 90 could fuel further selling down to 72.50.

Nvidia formed an Evening Doji top and reversal pattern last week (circled on the daily chart) . To demolish and reverse that a close above 170 is needed. Nvidia is testing its short-term rising trendline. A break of the trendline we are likely to see a test minor support at 150.80. A close below that level is likely to fuel selling down to 137.50-129.50.

If this scenario plays out the October lows around 108 could be tested. Medium -term Nvidia is trading in a wide falling channel with RSI showing negative sentiment and no divergence i.e., RSI is supporting the bearish picture.

Alphabet C (Google) will by a close below 94 resume down trend that is likely to take the share price down to 83.45 but possibly lower. To reverse the bearish outlook short-term Alphabet needs to close above 100.42 but then there will be strong resistance at around 105.14.

Microsoft is range bound between 248 and 235. A break out is needed for direction. With negative RSI break out direction seems likely to be down. If Microsoft closes below 235 November lows around 213.43 is likely to be tested. That is also around the strong support on medium-term. A close below this support the $200 is in sight for Microsoft but there is no support until around 196.25 and the 0.786 retracement at 179.

Weekly RSI was rejected at its upper falling trendline indicating RSI could dip back below 40 threshold. However, there is divergence on RSI making the picture a bit blurry. If RSI closes below the lower rising trend line that divergence is likely to e demolished supporting lower price levels on Microsoft.

RSI divergence explained: When  price 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

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