The dominance of mega cap growth stocks like Microsoft (ticker: MSFT), Apple (ticker: AAPL), Amazon (ticker: AMZN), Netflix (ticker: NFLX), and Alphabet (ticker: GOOGL) has been the story of 2023.
In the first half of the year, the FAANG stocks made incredible upside gains while the average stock led a much more meager existence return-wise.
Are these FAANG stocks due for a pullback? Will value-oriented sectors like energy and materials rotate into the driver’s seat as growth takes a breather? And how can we differentiate a short-term pullback from a broader and more painful corrective move?
In today’s video, we’ll review the strong performance of the FAANG stocks in 2023, break down some possible breakdown scenarios, and share why the 50-day moving average may be the most important barometer to watch! Also see 2 stock charts further below for reference.
- What makes a chart like AAPL look so consistently strong, and what would tell us the chronic uptrend is over?
- Does GOOGL’s recent bounce off its 50-day moving average give us a preview of what to expect for other large cap growth names?
If and when the 50-day moving average is broken, how can we identify potential downside targets for a correction?
[VIDEO] FAANG Stocks Eyeing Important Support!
$AMZN and $AAPL stock charts
The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.