Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Big Tech, Big Troubles

by August 9, 2023
August 9, 2023
Big Tech, Big Troubles

The seven mega-tech stocks, known to some as the Magnificent Seven, have had a magnificent advance since late last year, but now we’re seeing some weakness, and it is likely that they will be under-performing for a while. Many have been affected by an emerging expectation of miracles from Artificial Intelligence (AI), but these expectations have no specific manifestation at this point in time. More like irrational exuberance for the time being. Let’s look at their charts.

APPLE (AAPL)

Since the price low in early-January, AAPL has maintained an orderly advance until early this month. Then it broke down through the seven-month rising trend line with a vengeance. After an -11% decline, it has paused on obvious support, forming a bearish reverse flag. Our expectation would be for a continued decline.

Amazon (AMZN)

AMZN has been advancing since the December price low. In July it began forming a bearish rounded top, but it gapped up last week on the earnings report. Since then, we are seeing a technical pullback. Currently, we see the recent price cluster as possibly being a setup for an island reversal, which would result in price gapping back down to horizontal support at about 125.

Alphabet, Inc. (GOOGL)

GOOGL made a low in November, then it began a gradual advance, which resulted in the formation of a saucer. It gapped up and out of that saucer in May and began forming a handle on the saucer in June and July. In late-July it gapped up again and has since been forming its own island formation, which of course, has the potential to reverse and gap down.

Meta Platforms, Inc. (META)

META hit a bear market bottom in November, then entered an orderly and profitable advance. At this writing the rising trend is still intact, but with technology stocks currently in correction, we would expect that META will follow suit. The first line of support is just below 280, and the next just above 240.

Microsoft (MSFT)

MSFT bottomed in November and has since been forming the right side of a saucer formation. In June it began moving sideways, forming a handle on the saucer. This is a bullish formation, but there is some potential downside as the handle is formed–maybe down to 290?

Netflix (NFLX)

NFLX bottomed over a period of three months last summer (not shown) and has since had a somewhat choppy, but persistent advance. The two “swoosh” marks emphasize how corrections tend to follow advances that become too vertical. The relevant feature at present is a head and shoulders formation with a neckline drawn across the two lows. If the formation executes (price drops below the neckline), the minimum downside projection is about 350.

Nvidia (NVDA)

NVDA was the company that benefited most from AI fantasies with a mighty up gap in May. Since the July top it has been giving back some of its gains, and it is currently in a declining trend. A reasonable downside projection would be down to the top of the gap around 360-ish, which would be a decline of about -25%.

CONCLUSION: The technology sector has gone into correction, and most of the big tech stocks are feeling some of the heat Of those not yet correcting, we think it likely that they will also succumb soon.

–Carl Swenlin

Learn more about DecisionPoint.com:

Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2023 DecisionPoint.com

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

0
FacebookTwitterGoogle +Pinterest
previous post
SMEs need to place user experience at the heart of their digital strategy
next post
The Ord Oracle August 8, 2023

You may also like

The Kids: Semiconductors, Biotechnology, Regional Banks

October 20, 2023

Investment Portfolio Feeling Stagnant? Transform Your Path Today

May 9, 2025

Now That “Stagflation” Has Gone Mainstream

April 28, 2023

DP Trading Room: Technology On Its Way Down?

July 10, 2023

Alibaba Returns to the Scene of the Crime

June 8, 2024

Riding the Stock Market’s Wave: How to Maximize...

November 13, 2024

The BEST Simple Moving Average Trading Strategy

February 5, 2025

DP Trading Room: ETFs vs. Indexes

March 20, 2023

The Halftime Show: Stocks Turning Bullish This Week

May 1, 2023

How to Use Emerging Relative Strength

February 23, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • National Wealth Fund commits £200m to UK battery storage push

      August 28, 2025
    • XRP price prediction hits new highs, GMO Miner helps you earn $6,800 a day

      August 28, 2025
    • West End retailers lose £310m from VAT-free shopping ban in first half of year

      August 28, 2025
    • Dollar slips as Trump moves to sack Fed governor Lisa Cook in unprecedented clash over central bank independence

      August 28, 2025
    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025

    Categories

    • Business (8,901)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved