From Chris Kimble: Today’s 6-pack of stock charts takes another look at the market leading Technology sector.
As I mentioned on Monday, the Nasdaq has formed two bearish divergences (one external and one internal) that investors should monitor. Today we transition to tech leadership: The FAANG stocks. They may provide more color for investors worried about tech.
3 of 5 FAANG stocks are testing important breakout levels: Amazon (AMZN), Apple (AAPL), and Netflix (NFLX). Breakouts for any of these 3 FAANG stocks would go a long way in pacifying investor concerns. However, those levels remain resistance until proven otherwise. And investors certainly don’t want selling to begin here.
The other two FAANG stocks are testing or nearing support. Facebook (FB) is in a world of hurt after concerns over its data became big news this week. And Alphabet (GOOGL) is in no man’s land but nearing lower support. Once again, bulls don’t want to see selling there!
You can see each of these FAANG stocks below, along with the S&P 500. Tech has been an important part of the bull market, so its a good idea put these tech leaders on your radar.
When analyzing chart patterns of FAANG stocks, Facebook is facing the most important test of support!
Support is Support until broken and despite the negative headlines of late for Facebook, this 4-year support line remains in place.
The Technology Select Sector SPDR Fund (XLK) was unchanged in premarket trading Thursday. Year-to-date, XLK has gained 6.00%, versus a 1.34% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.