Mag7 Tech Stocks - Weekly Update #3
Black Monday today, markets across the World have been affected. For those who do not understand what caused this massive selling pressure today, here's a brief explanation:
Luis Ricardo Guizado
Roundhill Magnificent Seven ETF (MAGS)
We are now standing at another critical level.
Either $40 acts as support and we get a bounce towards $44.
Or, we continue to dump towards $36.
Price has reacted well so far and odds should favor longs but there is no rush in jumping in with everything that's going on with Japan. From a trading standpoint we’d rather wait and see how this market panic selling unwinds. For any long term investors one thing is true, it's at moments of extreme fear like these where you start positioning yourselves in the assets you believe in. DO NOT GO ALL IN, there’s no best entry as dollar cost averaging your way in. Below we’ll analyze each stock from a macro perspective and as always, we’ll keep you updated.
Meta Platforms (META) -Bullish
Short term is holding up great. Any retrace towards $460’s should be a buy to target $515’s at first, stops placed at the most recent lows. Long re-entries or position increases upon a break above $530’s as long as we find support above that zone.
Bearish scenario: we lose $460’s and down we go.
Microsoft (MSFT) - Bullish
LONG play is ON!
As advised in our last report, we have now reached our the ideal long entry for a swing trade. Price just took liquidity off the $387 level and we are at the best risk reward entry. A long at market price or entries closest to $390 and we’ll be targeting around $425 at first. Low of $383 must be respected.
Bearish scenario: we get stopped out and go straight to $360’s and even $320’s if we get a steeper correction.
Apple (AAPL) - Neutral
Kudos to anybody who was able to long our first macro long entry at $200 area. Price bounced quite well and we made a quick 6% trade so far.
Short term, from a lower time frame it is likely we’ll continue up towards $220. As of right now there is no trade as the long entry was at the $200 price range.
Now we either establish support above $225 for further upside or we do a retest of $200 ish area again hoping it will hold because if it doesn't then see you all at $170’s (AWESOME LONG ENTRY).
Amazon.com (AMZN) - Bearish
Completely shaken out of this one. In our previous report we said we were bullish as long as it stays above $170 but unfortunately price has broken down quite strong and is currently trading below a critical level which IS RISKY.
Short term, it is likely we’ll bounce towards $180 but keep in mind right now price action is completely bearish. Unless we break and find support above $190, do not expect further upside. Ideal macro long entries at around $120’s.
Alphabet (GOOGL) - Bearish
We are in for a bigger retrace. Short term trade ideas, NONE. We’ll wait and see what happens in the next few days. No point in jumping in right now as there is no clear trade right now. Any price correction toward $130’s is a great macro long entry.
Nvidia (NVDA) - Bearish
Sub $90’s on its way. This was an over hyped stock with massive returns but everything that goes up must come down at some point, don’t it? Obviously not going to zero but looks like the descent correction is on its way, COMPLETELY NORMAL.
Around $80 price range must hold up if we start trading below it’ll be game over as we might be in for a bigger retrace. But for now macro long entries at around $80 should be a bargain and anybody that’s on the sidelines must be adding to their positions here. Carefully jumping in, taking into consideration what's currently happening in the markets.
If price bounces past $120 before we get the steeper retrace, then we'll jump back in then. Price does needs to find support above $115 ish then we’ll long.
Tesla (TSLA) -Bearish
We said it before and we say it again now. COMPLETELY NORMAL retrace. Any continuation towards $160 should be a BUY. Yes this stock is already down 50% below its all time high but as previously mentioned it has broken bullish market structure and as long as we are able to stay above $160 we’ll be in for further bullish continuation.
Disclaimer
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