Technical Update - Correction time in Tesla, NVidia, Microsoft, Meta and Amazon Technical Update - Correction time in Tesla, NVidia, Microsoft, Meta and Amazon Technical Update - Correction time in Tesla, NVidia, Microsoft, Meta and Amazon

Technical Update - Correction time in Tesla, NVidia, Microsoft, Meta and Amazon

KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

If Tesla closes below 234.86 it has been closed and can potentially demolish the current bullish picture where Tesla is likely to move higher after a correction.
A closing of the body gap could lead to a down trend down to around 200 where 55, 100 and 200 daily Moving Average will offer support with the 0.618 retracement.

RSI is still showing positive sentiment and no divergence suggesting new highs is likely – after a correction

Source all charts and data: Saxo Group
NVidia uptrend has been showing sign of weakness for some time in the form of RSI divergence i.e., declining RSI values while stock price has gone up. MACD indicator is warning of a reversal.
 
Yesterday’s sell-off suggests share price could drop to test key support at around 374.75.
Sellers might want to try closing the gap but that is technically not in the cards. The gap seems too wide to close that easily, however but a move down to approx. the middle of the gap could be seen.
If the gap is closed i.e., a close below 316.78 it could jeopardize the medium-term uptrend

The medium-term trend is still up but very stretched with RSI almost hitting 90.  
Nvidia reached the 1.382 projection of 2022 down trend but there is no weekly RSI divergence indicating likely higher levels  medium- to longer term.

Microsoft has broken bearish out of its rising channel like pattern and is likely to test support at around 323.25, possibly dipping down to strong support at around 312.29.

The 55 daily Moving Average will offer some support and RSI is still positive in sentiment with no divergence suggesting this is merely just a correction and higher levels are likely.
If Microsoft close back above 340.12 uptrend is to resume

Meta Platforms uptrend seems to be exhausting. Despite buyers lifted the stock at the open yesterday sellers took immediate control and kept it throughout the session.

RSI divergence has indicated divergence underlining the exhaustion picture. A test of the support at around 260 is likely. A close below 260 could lead to a larger correction down to 243-230.

If closing above yesterday’s peak at 289.89 the uptrend is to be extended. 

Amazon has been showing RSI divergence indicating trend exhaustion. A correction down to test the lower rising trendline could be seen. Support at around 120.58

Medium-term uptrend is intact and a correction is likely to be limited. However, if closing below 120 further down side to the 0.382 retracement and support around 115 is in the cards.

Author is holding a short position in Tesla

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

Disclaimer

The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.