Key Stock Price Levels to Watch in Tech Behemoths
As Nvidia (NVDA), Microsoft (MSFT), and Apple (AAPL) continue to compete for the title of the world’s most valuable company by market capitalization, it’s essential to keep an eye on key chart levels in each tech behemoth. By analyzing the weekly charts of these companies, we can identify crucial levels that may impact their stock prices.
Nvidia
Since hitting a low just below the 200-day moving average in October last year, Nvidia shares have been on a strong upward trend. Investors have been quick to buy any minor dips, driving the stock price significantly higher. However, the stock appears overbought, trading around 56% above a multi-month uptrend line. The relative strength index (RSI) also indicates overbought conditions.
During periods of profit-taking, it’s important to monitor if buyers can defend the uptrend line around $87. A breakdown below this level could signal a potential test of the consolidation area near $50.
Microsoft
Similar to Nvidia, Microsoft shares have been trending upwards since finding support around the 200-day MA in October last year. The stock is trading close to an uptrend line, with the RSI indicating less overbought conditions compared to Nvidia. While the lower RSI suggests room for further upside, it also indicates less momentum in the stock.
Keep an eye on how price reacts to the uptrend line in Microsoft shares. A failure to hold this key technical indicator could lead to a decline towards two prior record highs around $350.
Apple
Apple shares recently broke out of a narrow 12-month channel after unveiling Apple Intelligence, its personalized AI technology. Despite the RSI moving into overbought territory, the stock has room to continue moving higher following the breakout.
Using the measuring principle, investors can project a potential price target by calculating the distance between the channel’s lower and upper trendlines and adding that amount to the breakout point. For example, adding $31 to the $197 breakout point forecasts a price target of $228.
It’s important to note that the comments, opinions, and analyses expressed are for informational purposes only. As of the date of writing, the author does not own any of the mentioned securities.
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