Breakout Or Reversal?
Tim Knight | Aug 19, 2022 06:36AM ET
Per Tim’s request, I’m sending content your way. I’m know I’m no TNRev, but I thought I’d note some interesting action on the prior market leaders. They still hold a lot of weight in the indices (especially Apple (NASDAQ:AAPL), so it is worth looking at which direction they are set up to move.h2 Apple/h2
I swear, this thing is just f***ing with me. It is at a major downward sloping trendline from the January 2022 peak. This is probably the strongest stock out there and is singlehandedly holding up the S&P and the Nasdaq. Yet, it successfully is showing some choppiness at the trendline. At this point, I am just hoping this resistance holds.
h2 Amazon/h2Amazon's (NASDAQ:AMZN)'s horizontal line at 144.20 represents prior support from July 2020, September 2020, and March 2021. This is also successfully chopping under this resistance. This attempted to breakout above this level with the market on Tuesday with the broad market (just enough to hit stops), but closed back below it. 140 is short term support that I am looking for this to break to confirm rejection here.
h2 Microsoft/h2Microsoft (NASDAQ:MSFT) is just under a trendline dating back to September 2020 as well as a 200 day EMA. Much like everything else I am hoping this proves to be sufficient resistance for a turnaround.
h2 Tesla/h2
Get The News You Want
This I found a little intriguing. I was looking at Tesla's (NASDAQ:TSLA) previous trendlines I had on this and found one from January 2021 to October 2021. I usually delete trendlines once they are broken and tested. But now that it has broken back below those levels, it looks like it is trying to hold beneath that line now. I’m sure there is something more to the price level between $900-930, but it is just kind of coincidental that it is holding beneath this trendline.
h2 Google/h2The more I looked at Goole (NASDAQ:GOOG) the weaker it looks relative to most of the other FANG stocks. There is the previous support level at 124.6 (support from June, July of 2021, January and February of 2022), which this could not manage to hit. Once it broke beneath this level in March, it managed to find resistance at 123 in April and May. It is attempting a basing pattern breakout above 119-120, but it is not exactly knocking my socks off.
h2 Meta/h2Beneath a descending trendline since April in Meta Platforms (NASDAQ:META) as well as the horizontal line prior support from April and May and resistance in July.
h2 Netflix/h2Beneath Horizontal prior support in Netflix (NASDAQ:NFLX) from September 2018 and November 2019 and the highs from the earnings gap down in April.
So, everything is primed and ready for either a breakout or a reversal. I of course am leaning towards the reversal, but AAPL is truly throwing a wrench into the mix. The unmatched strength of this one stock is literally holding up everything right now. Is everyone just betting that their new I-phone is going to be that spectacular in September? Who knows. But if this continues, then it has the potential to drag up the other big tickers in sympathy.
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