The five FAANG stocks, Facebook, Apple, Amazon, Netflix and Google (Alphabet), started the year strong as three moved back above their 50-day SMAs on Tuesday. Alphabet and Amazon were already above their 50-day SMAs so this means all five are back above these key moving averages. The chart below shows all five with the patterns at work. First note that all five are in long-term uptrends because they recorded 52-week highs in the third quarter and are above their rising 200-day SMAs. The top window shows FB breaking out of a triangle consolidation. We can then see AAPL bouncing near consolidation support. AMZN is trading within a tight triangle and poised for a breakout. NFLX broke the October trend line with a gap and this signals an end to its correction (Oct to Dec). And finally, GOOGL broke out of a falling flag with a 1.88% surge on Tuesday.
****************************************
Thanks for tuning in and have a great day!
--Arthur Hill CMT
Plan your Trade and Trade your Plan
*****************************************
