Netflix (NFLX) and Alphabet (GOOGL) have both failed the test, and now Facebook (FB) and Amazon (AMZN) are facing the same challenge. It involves holding their rising 50-day moving averages. Last week, Netflix and Alphabet shares began trading well above their 50-day averages but immediately started moving lower and continued to deteriorate, closing out the week well below the average. The price action in Amazon and Facebook was also weak, but they were able to hold above their 50-day averages. If they continue to hold the line and bounce off this technical support, it could reinvigorate the technology sector and rescue their FANG counterparts. If, on the other hand, they fail the test, it would likely accelerate the weakness in the space.
Bloomberg Pro Terminal
Trader Velizar Mitov
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.