Nasdaq 100 Rally: Microsoft Leads, Tesla Lags | Invesloan.com

Nasdaq 100 rallies will not be that uncommon over the previous few years however final week’s up transfer demonstrated a brand new twist for the Big 7 of the index that signify the big market capitalization names from the tech and social media world. Microsoft
MSFT
led strongly, because it normally does, however Tesla
TSLA
is exhibiting particular weak spot now.

Wall Street funding managers, beneath nice stress to outperform one another, are excited to assume {that a} “soft landing” for the financial system has landed and that rates of interest have bottomed. So they purchase the Nasdaq 100’s Big 7 like they’re going out of favor and one other rally appears to have blossomed.

I don’t fully purchase that evaluation as I point out proper right here, however let’s have a look at the value charts.

Nasdaq 100, Microsoft, Tesla worth charts.

The Nasdaq 100 each day chart is right here:

The rally coming off of the late October low is certainly in place now with a number of closes above the 50-day transferring common (the blue line) and a break above the early October excessive. The subsequent apparent goal is the July excessive simply above the 15800 degree. Note the regular up development of the 200-day transferring common (the crimson line).

Here’s the weekly worth chart for the Nasdaq 100:

If the index can clear that 15800 space, then the following goal can be the late 2021 highs up above 16500. The Nasdaq 100 has been trending upward, for probably the most half, for the reason that October, 2022 low. It’s a optimistic, for certain, that each the 50-week and the 200-week transferring averages are up trending.

The each day worth chart for Microsoft seems like this:

The Bill Gates-led software program firm is doing a lot better, price-wise, than the Nasdaq 100 index as an entire. Last week’s new excessive of $369 takes out the mid-July excessive of $365. The inventory’s 50-day transferring common and its 200-day transferring common are each trending increased. Note that that relative energy indicator (RSI, beneath the value chart) has reached an “overbought” degree.

The Microsoft weekly worth chart is right here:

This week’s new excessive breaks out above the excessive from July. The 50-day transferring common is turned upward early this 12 months and continues increased. The 200-day transferring common tendencies increased relentlessly. The relative energy indicator reveals a probably “overbought” situation.

Here’s the each day worth chart for Tesla:

Notice how not like that is in comparison with the Microsoft each day worth chart: there is no such thing as a new excessive for Tesla. In truth, at $214 it’s fairly a distance beneath the July excessive of $300. The inventory has closed beneath the 200-day transferring common. The 50-day transferring common is now trending decrease.

The weekly worth chart for Tesla is right here:

While Microsoft is now above its earlier weekly highs, Elon Musk’s automotive firm is way decrease. It seems as if the 50-week transferring common could also be about to cross beneath the 200-week transferring common, which might be a unfavorable look.

Previously, the large tech and social media shares of the Nasdaq 100 have tended to development collectively — however this time round, that’s not the case, as you may see by evaluating the Microsoft and Tesla charts.

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