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FAANG Stocks: The Ones to Watch and the Ones to Avoid The market may be sitting at all-time highs, but that doesn’t mean every stock is a buy. In fact, when you dig into the mega caps, the picture isn’t all that pretty. The Nasdaq 100 (QQQ) has been leading the charge higher, but a closer look at individual names tells a different story. A handful of FAANG stocks are flashing warning signs, while a couple stand out as potential opportunities. Here’s what I’m seeing right now. Netflix and Apple Show Strength Netflix (NFLX) is the best-looking chart in the group. It pulled back to the 8-day moving average and is holding up well. That’s the kind of price action I want to see when looking for strong stocks in a market that lacks clear direction. If it holds this level and pushes higher, it could have a solid move ahead. Apple (AAPL) is another name showing promise. It’s been holding its ground near resistance, and if it can take out this level, we could see a breakout. While it’s not a screaming buy just yet, it’s worth watching closely. Microsoft, Google and Amazon Look Weak Microsoft (MSFT) looks like a mess. It’s not setting up for a breakout, and it’s not breaking down enough to warrant a short. It’s just stuck in the middle of nowhere. When a stock looks like this, I don’t try to force a trade. Google (GOOGL) isn’t any better. The chart looks weak, and there’s no clear direction. If anything, this one might be a candidate for an iron condor trade — when a stock looks like it’s going nowhere, selling options around that range can be a way to take advantage of the chop. Amazon (AMZN) has been strong recently, but now it’s starting to crack. It’s breaking below the 50-day moving average, which isn’t what I want to see from a leader. It could find support and bounce, but right now, it’s in a dangerous spot. Meta and Tesla are in no man’s land Meta (META) also doesn’t look great. The stock had a strong run, but now it’s stalling out. I don’t like the price action here, and I’d rather stay away for now. Tesla (TSLA) is sitting on the 15-day exponential moving average, but it hasn’t made a decisive move. If it breaks down, it could head lower. If it holds, there could be an opportunity for a bounce. Right now, it’s not giving me a high-confidence setup in either direction. The FAANG stocks aren’t all moving in the same direction, which is a sign of a market that lacks a clear trend. Netflix and Apple are showing strength, while Microsoft, Google and Amazon look weak. Meta and Tesla are in no man’s land. This is not a time to blindly buy mega caps just because they’ve led the market in the past. Some are setting up well, while others are flashing warning signs. If you’re looking for trades, focus on the charts that are actually giving you an edge — not the ones that are just drifting. Took Me 18 Months to Hit This Trading Breakthrough! And now, everyday traders like us can have a shot at 5-10x bigger returns! Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. |
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