FANG Pulls Back

Feb. 07, 2019 6:38 PM ETAAPL, META, GOOG, NFLX, SPY
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Summary

  • After a very big month to start off 2019, FANG stocks seem to have taken a breather.
  • Many lower indicators are starting to cool off out of overbought levels with moves down to the daily SMA (20) below.
  • Is this move down simply profit-taking after a huge run-up or something that may have some momentum behind it?

The broad markets have finally started to pull back slightly with signs of volatility returning. As SPY dips back below $270, FANG stocks seem to be leading the way down into the end of the week. 

FB: Daily Candle W/ Monthly SMA Overlay

Facebook daily candle with the monthly SMA (20) overlayWritten Analysis:

1. The daily price of Facebook was rejected right at the monthly SMA (20) with a huge gap below. However, there is also a large gap above to remember from this summer as well. 

2. The MACD is showing signs of momentum reversing shown by the histogram bars moving down. 

3. The %R is moving down from extremely overbought levels with plenty of room to move down if this continues to pullback into Friday. 

4. The Vortex indicator is moving towards a bearish cross with the VI+ converging down towards the VI- which has signaled further moves down in the past. 

AAPL: Daily Candle W/ Monthly SMA Overlay

AAPL Daily chart with monthly SMA (20) overlayWritten Analysis:

1. Apple continues to trade in the very parallel downward sloping channel with a pullback right below the monthly SMA (20). Previous resistance on the gap up may be acting as support below on continuation down.  

2. The MACD histogram is moving down showing momentum fading into the end of the week. 

3. The %R is creeping down out of overbought territory. 

4. The Vortex indicator is starting to converge somewhat but this has been a false signal in the past for a further move down. 

NFLX: Daily Candle

NFLX Daily chartWritten Analysis:

1. Netflix is trading right above the daily SMA (20) after bouncing hard off of it intra-day Thursday. There was a strong double top from mid-January 

2. The MACD recently crossed to the downside with the histogram looking much different here than FB and AAPL.

3. Compared to SPY and AAPL, the %R on Netflix has moved down quicker and further with more room to move down. 

4. The VI very recently had a bearish cross with the VI+ moving down through the VI-. 

GOOG: Daily Candle

GOOG Daily chartWritten Analysis:

1. Google is trading at the apex of a symmetrical wedge with a nice bounce off the daily SMA (20) today. 

2. The MACD is curling down with the histogram nearing the zero line (this is when the MACD line crosses the signal line).

3. The %R is moving down rather quickly similar to NFLX with more room to move down if the symmetrical wedge support broke down. 

4. The Vortex Indicator is converging but this false signaled for a further move down just a couple weeks ago. 

NOTE TO READERS: All charts posted in this article are from the TrendSpider automated technical analysis platform and have been annotated outside of the platform. These are simply our views of the current technical landscape of the stock market and should not be taken as trading or investment advice. To view the video analysis for all of these tickers for Thursday, February 7th please click here. 

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