The ugly and broken price charts of Amazon, Meta (formerly Facebook) and Netflix
The big names, the big tech stocks aren’t supposed to drop 25% in a very short period of time. Lately, however, it has become almost the norm for the most well-known components of the NASDAQ-100. Fund managers are quick to offload when earnings expectations are not met.
Amazon’s daily price chart looks like this:
As you can see the price is back to the January level where it crashed to around 3200. It’s not uncommon to see this kind of action after a big drop – now that it’s back to that level, the sellers come back to their sale and it’s hard to keep going higher. Note that Amazon’s price remains below both the 50-day moving average (the blue line) and the 200-day moving average (the red line) and both have moved lower.
Amazon Weekly Price Chart is here:
On this longer term view, you can see how this sharp drop took the stock below the late 2020 lows and early 2021 lows of just under 2900. It bounced off a volume decent, but the price action is clearly deviating from the momentum indicators above and below the price chart. Amazon’s 50-week moving average is also about to drop.
Daily Meta Prize Chart:
Shortly after CEO Mark Zuckerberg changed his company’s name, the stock plummeted significantly. It’s easy to see, however, that Meta had started to steadily decline since September. This February gap in huge volume is a significant change for the way what used to be known as “Facebook” traded. So far below the two moving averages so quickly – not a good look.
Weekly meta price chart:
What a drop, huh? Below the 200-week moving average on the heaviest weekly volume on record. The 50-week moving average is about to turn lower. Meta stayed above the March 2020 pandemic lows, that’s about the only bright spot I can see on this sad chart.
Netflix Daily Price Chart:
Yet another big gap on another big name in the NASDAQ-100, formerly known for occasional gaps. After sinking like a rock in mid-January, Netflix attempted a rebound in February, but it looks weak so far. The 50-day moving average started falling in December 2021 and you can see that it has moved above the 200-day moving average.
Netflix Weekly Price Chart:
Netflix co-CEO Reid Hastings bought a good chunk of stock near January lows and that seemed to help for a few days. In the meantime, it remains below the two significant moving averages and this 50 week has already started its descent. Note how the stock did not hesitate to exit the 450/475 level which had provided support from mid-2020 to mid-2021.
No investment advice. For educational purposes only.
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