3 Big Stock Charts for Thursday: Facebook Inc (FB), Tesla Motors Inc (TSLA) and Alphabet Inc (GOOG)

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Newer technology names continue to struggle during this sector migration as investors continue to eye the new bull market sectors like materials, industrials and transportation stocks. The result is that a large number of the traditional technology leaders are under pressure from their charts.

Facebook Inc (NASDAQ:FB), Tesla Motors Inc (NASDAQ:TSLA) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) are all in the position of lagging broader indices. It has become time for a make-or-break situation as each are currently facing short-term chart resistance.

Facebook Inc (FB)

161208 FB Price Chart
Source: Chart courtesy of StockCharts.com

Shares of Facebook had struggled since the election for a few reasons. The drop in price transitioned the 50-day moving average for FB stock into a bearish trend, indicating a higher probability of lower prices over the next 4 to 6 weeks if the trend remains in place.

The fact that the stock recently moved below its heavily monitored 200-day trendline and is now finding resistance at the $120-price where it resides has put Facebook shares into this must-win situation. This is FB’s current “must-win” price as a break above will open some room overhead for the stock to move higher.

Facebook shares recently benefited from an oversold technical bounce, but volume has dried after that rally, indicating that the bounce may be more of the “dead cat” variety.

For now, traders should steer clear of FB as a rejection at $120 is likely to target another wave of selling and the potential for Facebook to test its June lows of $108.

Tesla Motors Inc (TSLA)

161208 TSLA Price Chart
Source: Chart courtesy of StockCharts.com

Another technology company struggling in a downward trend is Tesla Motors. Since peaking in April, TSLA shares have shed over 25% as the stock charts a pattern of lower highs and lower lows.  The pattern suggests that Tesla stock is suffering as traders and investors are taking any rally as an opportunity to reduce holdings.

From a long-term perspective, TSLA is trading in a bear market as the stock is well below its 20-month moving average, which is also trending lower. Some traders may see Tesla stock as a “value”, but the technical trend suggests otherwise.

Looking at the chart, TSLA’s “must win” price is at $195; the spot where its 50-day moving average currently sits. This trendline has been staunch resistance for Tesla stock since it rolled over in August and began to trend lower.

From there, TSLA stock gets into a technical pinch as support is immediately below at $180. This means that we’re likely to see an increase in volatility in Tesla shares as one of these key levels is going to give way for the next big move in the stock.

Alphabet Inc (GOOG)

161208 GOOG Price Chart
Source: Chart courtesy of StockCharts.com

Alphabet is the last of the stocks in the technical must-win situation today. While GOOG shares have been lagging the broader market, they are performing better than a large number of technology stocks.

As early as last week, Alphabet shares found key support at their 200-day moving average. From there, GOOG stock shot back to the $800-level where it is going to find some resistance impeding its move higher.

The proposed resistance comes in the form of a confluence of technical trendlines, namely the 50- and 100-day moving averages of Alphabet’s price. Both trendlines intersect just below $800 and they will certainly start to tip technical traders to sell unless GOOG stock breaks cleanly higher.

Volume on Alphabet shares is lightening up a bit as the traders are taking a wait and see attitude towards the $200 price. This makes this level the “must win” target for GOOG over the next few trading days.

Failure to break higher will likely result in another trip to the $760 price, where the 200-day trendline resides. This has supported the stock twice in the last month. Given the inversion of the 50-day moving average, the risk of the 200-day moving average giving way to lower prices is now higher.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/12/3-big-stock-charts-for-thursday-facebook-inc-fb-tesla-motors-inc-tsla-and-alphabet-inc-goog/.

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