These are the purchase levels of the big technology companies on Wall Street and when to raise the ‘red flag’

In the world of trading and investing, few groupings of stocks have captured investors’ attention as much as the FAANGan acronym that originally referred to Facebook (now Meta), Apple, Amazon, Netflix, and Google (now Alphabet). This term, popularized by Jim Cramer in 2013, has evolved over time, adapting to changes in the market and the relevance of these companies. Today, Cramer has updated the acronym to MAMAAwhich includes Microsoft, Apple, Meta, Amazon and Alphabet, reflecting the prominence of these technology giants in the global economy.

Their technical analysis can not only provide us with a detailed view of their individual evolution, but can also offer us a valuable pulse of the market in general. These companies not only dominate their respective sectors, but are also considered a barometer of the health and trends of the technological and financial market.. Their stock market behavior can significantly influence the most important indices and investor confidence, making them a crucial reference to identify and seek to understand the dynamics of the current market.

In this analysis, I will take a deep look at your key metrics and technical patterns to identify potential opportunities and risks, providing an strategic guide for investors who want to position themselves in these titans.

Microsoft

When I analyze Microsoft’s price curve, the first thing that catches my attention is the possibility that the stock could end up confirming a broad bearish reversal pattern known as a head and shoulders. To do this, the selling pressure should be able to break the key support that the title finds in the 380 dollarsthat It is located 8.50% away. As long as it remains standing, what today is a simple threat will not be confirmed. In fact, I would be in favor of using a filter up to the theoretical support of the $371which is the 38.20% Fibonacci adjustment level of the entire last major bullish movement that was born at the October 2022 lows from $214, before confirming that bearish pattern, which would open the door to a potential bearish scenario towards 300-310 dollars.

In summary, operationally, if someone wants to buy Microsoft shares, the recommendation is that they do so as soon as they reach the 380-390 dollars driving a clearing stop linked to not losing the $371. If that support falls, the optimal thing would be to sell to resume purchases in the 300-310 dollars.

Microsoft can be used as a barometer to measure the health of the upward trend of the North American market. As long as your quote does not lose $371 there will be no need to remove the red flag.

Apple

With Apple it is also very easy to identify where the critical support is located, which in no case should be lost if we want to continue trusting in a bullish context in the coming months. This support is located at the lows of the panic session of August 5 in the 196 dollars. There is the dividing line that separates a context of bullish continuity from a potentially bearish one towards the 165-173 dollars. They can buy as soon as they assume that stopwhich today is located just over 10% away. We will not raise the red flag on Wall Street as long as Apple does not lose its 196 dollars.

Goal

In the case of Meta, the support that it should not lose if it wants to continue keeping its bullish trend intact is in the area of 500 dollars. There runs the base of the channel that has been limiting the increases during 2024 and its loss would not make much sense in a context of strength on Wall Street. If it falls, I fear we would see a setback to the 400 dollarswhose scope I would see a priori as a magnificent opportunity to get on the long-term bullish trend, what I usually call the purchase price for my twin children.

amazon

The bullish movement that Amazon began at the beginning of 2023 from the 82 dollars remains completely valid and, at the moment, I do not detect or sense any bearish turn pattern that could put into effect check to that impeccable trend. In the worst case, within a bullish scenario, it could retreat to seek support at $180. There I would be a buyer.

Alphabet

In the August panic, Alphabet’s price reached the $150 support zone, which is the 38.20% Fibonacci correction level of the entire bullish movement that led to the title of the 83.50 at $191from October 2022 to July 2024. I doubt it will head back to that support zone of the 150 dollars and an eventual fall should not deepen under the 160 dollarswhere I would be in favor of buying. If $160 falls, it would reduce positions in Alphabet, since from then on it could not rule out a fall to $147-150 and even lower levels such as 140 dollarswhere months ago it opened a powerful bullish gap.

Netflix

Technically, Netflix is ​​the one with the strongest upward trend, as reflected by the fact that last week its price set new all-time highs. I don’t see anything that indicates weakness. The problem is that when prices show exhaustion, its price will probably have already fallen considerably. I prefer titles in which I can better identify the support and stop.

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