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