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

01 /

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

  • Equity Outlook: Will lower rates lift all boats in equities?

    Quarterly Outlook

    Equity Outlook: Will lower rates lift all boats in equities?

    Peter Garnry

    Chief Investment Strategist

    After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
  • Commodity Outlook: Gold and silver continue to shine bright

    Quarterly Outlook

    Commodity Outlook: Gold and silver continue to shine bright

    Ole Hansen

    Head of Commodity Strategy

  • Macro Outlook: The US rate cut cycle has begun

    Quarterly Outlook

    Macro Outlook: The US rate cut cycle has begun

    Peter Garnry

    Chief Investment Strategist

    The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
  • FX Outlook: USD in limbo amid political and policy jitters

    Quarterly Outlook

    FX Outlook: USD in limbo amid political and policy jitters

    Charu Chanana

    Chief Investment Strategist

    As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...

Content disclaimer

The information on or via the website is provided to you by Saxo Bank (Switzerland) Ltd. (“Saxo Bank”) for educational and information purposes only. The information should not be construed as an offer or recommendation to enter into any transaction or any particular service, nor should the contents be construed as advice of any other kind, for example of a tax or legal nature.

All trading carries risk. Loses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money.

Saxo Bank does not guarantee the accuracy, completeness, or usefulness of any information provided and shall not be responsible for any errors or omissions or for any losses or damages resulting from the use of such information.

The content of this website represents marketing material and is not the result of financial analysis or research. It has therefore has not been prepared in accordance with directives designed to promote the independence of financial/investment research and is not subject to any prohibition on dealing ahead of the dissemination of financial/investment research.

Please refer to our full disclaimer and notification on non-independent investment research for more details.
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-ch/legal/disclaimer/saxo-disclaimer)

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.