08/26/2018 |
Market Update Into 8/27: FANG Technical Analysis
A prepared trader is a profitable trader, and Sunday is a great day to get ready for the week ahead. This weekend, we are focusing on FANG stocks as there seems to be some divergence occurring between the four tickers. In order to make sure you are on top of the trade, it is important to use TrendSpider’s dynamic alerts to stay ahead of the action.
Ticker #1: Facebook ($FB)
Short-term technical setup: daily candle
- Facebook is still trading below the massive gap down from after their earnings release. Facebook is one know to fill most gaps it creates.
- The price is currently trading a the bottom of the channel with upside to the EMA (50) above.
- If $180 fails to break to the upside, watch for a very defined head and shoulders pattern possibly in the making.
Long-term technical setup: weekly candle
- The weekly trend shows a clear channel to the upside with a recent breakdown of both moving averages (EMA and SMA).
- The doji right on the current support line suggests buyers have stepped back in for the short term with a possible bounce back to the moving average resistance above.
Ticker #2: Amazon ($AMZN)
Short-term technical setup: daily candle
- Ascending wedge setting up with the last two days of action showing momentum has started to decrease and sellers may try to take back over and test support below.
- If the white support trendline fails to hold, watch for a potential breakdown to the EMA (50) below.
Long-term technical setup: weekly candle
- The weekly candle is showing that Amazon is trading in a longer term ascending wedge similar to the daily candle with price trading right in the middle of the channel.
- This is one of the two FANG stocks trading near all-time highs without a recent hard pullback.
Ticker #3: Netflix ($NFLX)
Short-term technical setup: daily candle
- Netflix corrected rather strong over the last month with a decent recovery so far with price breaking through the 50-day EMA.
- Watching for a test of the previous support area now acting as resistance above around $370.
Long-term technical setup: weekly candle
- Last week produced a massive bullish candle with a perfect test and close at the resistance trendline above. If the price can close above this area next week, a retest of previous highs is possible.
Ticker #4: Google ($GOOG)
Short-term technical setup: daily candle
- After being rejected at the channel resistance above, Google pulled back hard to test the daily EMA (50) below to fill the gap.
- A possible bull flag is forming if price can breakout through the resistance area it closed at on Friday.
Long-term technical setup: weekly candle
- The weekly candle shows buyers came back into the picture with the bullish harami setup identified by our Candlestick Pattern Detection.
