In the world of trading and investing, few stock groups have captured as much investor attention as the FAANG, an acronym that originally referred to Facebook (now Meta), Apple, Amazon, Netflix, and Google (now Alphabet). The term, popularized by Jim Cramer in 2013, has evolved over time, adapting to market changes and the relevance of these companies. Today, Cramer has updated the acronym to MAMAA, which includes Microsoft, Apple, Meta, Amazon and Alphabetreflecting the importance of these technology giants in the global economy.
Technical analysis of these companies can not only provide us with a detailed view of their individual developments, but can also offer us valuable market momentum in general. These companies not only dominate their respective industries, but are also considered a barometer of the health and trends of the technology and financial market.
Its stock market behavior can significantly influence the most important indices and investor confidence.making it a crucial reference for identifying and understanding current market dynamics.
In this analysis, I will take an in-depth look at key indicators and technical patterns of the FAANGs to identify potential opportunities and risks, providing strategic advice to those looking to position themselves among these titans.
When I analyze Microsoft’s price curve, the first thing that catches my attention is the possibility that the stock will eventually confirm a broad bearish reversal known in technical analysis as a “head and shoulders.” To do this, selling pressure would have to be able to break through the key support that the stock finds in the 380 dollarswhich is a support away from 5%.
As long as the $380 support remains, what is currently a mere threat will not be confirmed. In fact, I would favor using a filter on the theoretical support at $371, which is the 38.20% Fibonacci adjustment level of the entire last major upside move originating at the October 2022 lows from the $214before confirming this bearish configuration, which would open the door to a potential bearish scenario towards the $300-310.
In summary, operationally, if someone wants to buy Microsoft shares, it is recommended to do so at $380, managing a clear price. stop related to not losing the $371. If this support falls, the optimum would be to sell to resume purchases in the $300-310which is a bearish scenario that would only be favorable if the S&P500 He loses the critical support he finds at 5,000/5,100 points.
With Apple, it must be said that there is no downward trend on the horizon, as is the case with Microsoft, but that does not mean that if things go wrong and we see a drop in S&P500 to the August minimum zone around 5,000/5,100 pointswhere I insist once again on the fact that this is where the dividing line is located that separates a bullish context from a bearish context in the medium term, the price of Apple can choose to go in search of the zone of former resistance, now support of the $190-200. By then, there is room for a 10% decline.
Operationally, if someone is interested in buying Apple stock, I would tell them to place their buy orders in the $190-200 and the stop I would place it in the 164 dollarswhich is a medium I doubt would be lost even in the worst case scenario.
Those who know me and follow me for a long time know perfectly well that I feel more comfortable when I am able to identify critical supports, which must not be lost under any circumstances if we want to continue to trust in a bullish context. Well, in the case of Meta, this support is very clear and appears at the July lows in the $442which were not even lost in the panic session of August 5th. As long as this support is not lost, I am not in favor of closing positions unless someone wants to. surf and reduce your exposure to the title to buy back in the event of a fall in the $442 to $460.
Lose the $442 a clear and broad bearish reversal pattern in the form of a double top would be confirmed in the $542which would open the door to a potentially bearish scenario that might not find a bottom until at least 360 dollarswhich I would see a priori as a magnificent opportunity to take advantage of the long-term upward trend in value.
The upward movement that began Amazon early 2023 from 82 dollars has found a ceiling at $200. The falls that have been imposed on the title since the 200 dollars have already served for the price to have corrected the 38.20% of Fibonacci of all this rise described, after reaching the $150-155.
In this range of $150-155 This is where I would recommend you buy and where you can place your purchase orders. The stop reference would put it at $150. Think if you lose the 150 dollars The door would open to a corrective context that could be of a higher order and in this case I fear that Amazon could seek in the coming months the $122-127. This is where I would tell my twins to buy, although I would definitely think about it if it came down to it. $150-155.
The quote from Alphabet corrects the upward movement that took the stock from $83.50 to $191, from October 2022 to July 2024. I tell you this because with the fall we saw to $150, Alphabet has already corrected the 38.20% Fibonacci of all that goes up. With this support of $150, I can tell you that Alphabet is trying its luck and I would not be in favor of a sale until it loses this support.
If they fall 150 dollars The message that this would give us is that the correction could be broader and deeper than we could have estimated a priori, constituting a clear alarm signal for the technology market and the American stock market, without prejudice to the fact that it would not be comparable to the transfer of the 5,000 of the S&P 500. Below the 150 dollars there is no support until $120-125. There I would definitely place purchase orders.
