Alphabet, Amazon And Apple: The A-List. A Price Chart Analysis.

Alphabet (formerly Google), Amazon and Apple. These are Nasdaq 100’s A-list for the big cap and social media brand names. All have had sensational upward moves during the huge November/December 2023 rally, said by some to be attributable to modern artificial intelligence uses.

A big part of today’s action is a result of the Fed’s decision to keep interest rates right where they are. The consensus among Wall Street analysts is that rates would begin to be reduced — that was wrong as the consensus tends to be. The result is a bit of selling here among the A-team.

Here’s a close-up look at the price charts to see if any wisdom can be gleaned from such analysis.

Alphabet, Amazon, Apple Price Charts.

The daily price chart for Alphabet looks like this:

It’s a classic example of a Nasdaq chart showing price following a “less earnings than expected” quarterly report. The big gap down in the red circle is a minus 7.5% move back down to almost the level of the 50-day moving average (the blue line). Note the appearance of a big reddish selling bar on the volume chart below the price chart.

Here is the Alphabet weekly price chart:

The main thing here is that the weekly candlestick now shows a “bearish engulfing” pattern: the stock travelled higher then the previous week’s high and has now dropped to below the previous week’s low. Hence, “engulfing” and of the bear variety. Alphabet continues to trade well above both the 50-week and 200- week moving averages. You can see how the stock exceeded the 2021 high and found selling when it got there.

The Amazon daily price chart is here:

The huge on-line retailer is trading downward in sympathy with the less-than-expected Alphabet news — and with the Fed “keep rates the same” decision. The -2.39% slide takes the stock down to the level it was seeing just a few days ago, so it can’t be seen as some kind of stunning drop. Should it continue to tank to below the up trending 50-day moving average, then that would be something else.

Amazon’s weekly price chart looks like this:

Do you see how much different this is from the Alphabet chart? Amazon has yet to rise above the 2021 peaks. Also, the 50-week moving average crossed over the 200-week moving average in late 2022 and continues to trade below it (although it’s trending upward again).

The daily price chart for Apple is here:

It’s been a dizzying January for price movement: a gap down at the beginning of the month, then a rally that fills the gap and then a steady slide back down. Note that the January high never made it back to nor exceeded the December high of about $200. The price is now below the 50-day moving average and appears set to at least test the 200-day moving average.

The Apple weekly price chart looks like this:

The stock continues to trade above both up trending 50-week and 200-week moving averages. Note that the January 2024 high is lower than the December 2023 and lower than the July 2023 high as well. Berkshire Hathaway’s biggest position looks good — a break below that October support level at $165 might be cause for concern in the longer-term.

Additional analysis and commentary at johnnavin.substack.com.

Charts courtesy of stockcharts.com.