Meta, Microsoft and Apple to report earnings. What the charts show, according to Katie Stockton
The founder of Fairlead Strategies breaks down the technicals in the three tech stocks.
TL;DR
- Megacap earnings are important for major indices as the "Magnificent 7" comprise about a third of the S&P 500.
- Meta Platforms (META) and Microsoft (MSFT) report earnings on Wednesday, both exhibiting favorable technical setups.
- Both META and MSFT have undergone corrective phases, retesting long-term, cloud-based support, with positive technical signals.
- For META, a bullish catalyst would be a gap above $681, targeting the all-time high near $796; a breakdown below the cloud model targets $526.
- For MSFT, a breakout above $481-$485 resistance confirms a positive catalyst, with the next resistance at the all-time high near $555; a breakdown targets $425.
- Apple (AAPL) has also pulled back, showing an oversold condition that may lead to a positive initial reaction, but weak momentum suggests a potential retest of support after an initial move higher.
- AAPL's support lies in the $235-$243 area; a breakout above $275 would signal the correction has matured.
- The earnings outcomes for AAPL, META, and MSFT are likely to impact the broader market, unlike Alphabet (GOOGL) which remains overbought.