US Megacap Report – 26 January 2024

The US Megacap technical analysis report. Note: The report attempts to convey medium and longer term potential. Users can focus on their specific time frames, as highlighted and illustrated.
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Introduction:

The “Big 7” USA technology stocks have been the primary medium term driver of returns on the SP500 and Nasdaq indices. Their weightings growth in both US and international indices have increased the importance of these counters for all market participants.

This is a technical analysis report based without any fundamental considerations or overlay.

Content:

Microsoft (MSFT), Amazon (AMZN), Apple (AAPL).

General view:

The long term technical outlook on most of these counters remain bullish and in line with thematic growth prospects. Medium term extended market levels could result in meaningful bearish corrections later in the year. The exception to this is Tesla that seems to be in a long term corrective phase.

Explanatory notes:

The analysis is medium term detailed illustrated views of preferred general outcomes within the respective larger trends.

Important/pivotal levels for the views are highlighted, as a crucial component in re—assessing or negating views.

A separate report will focus on the rest of the Big 7 counters.

US MEGACAP STOCKS: MICROSOFT

FAST MATURING BULL TREND TO TARGET AREA

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Level: 40480
This report is for informational purposes only. Click to see the full disclaimer below.

US MEGACAP STOCKS: AMAZON

OVERLAPPING LP DEFINED GAINS, FOLLOWED BY MEANINGFUL CORRECTION

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Level: 15775
This report is for informational purposes only. Click to see the full disclaimer below.

US MEGACAP STOCKS: APPLE

KL DEFINED MEDIUM TERM BULL TREND

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Level: 19400
This report is for informational purposes only. Click to see the full disclaimer below.

This report is for informational purposes only, does not constitute an offer, or solicitation to trade and should not be construed as a recommendation, or advice, to enter into, or to refrain from entering into, any transaction.

Whilst the information herein contained is believed to be reliable, no responsibility is assumed by Hite Investments and Consulting, (Pty) Ltd., their employees, associates, external contributors, or any of the references used, for any errors, or omissions, or for losses of any nature which may arise from any opinion expressed herein.

You are cautioned that information is not necessarily complete and that opinions of individuals employed at the above may differ, or be based on contrary analysis techniques andthat opinions may change over time.

The losses in trading and investing can be substantial and you should not engage in such trading and investing unlessyou fully understand all the potential risks.

The views expressed in this report may change over time and updated reports will not necessarily be issued should this occur.

Red Line: “Roadmap” – A visual representation of proba-ble future price action. A perforated red line suggest various proba-ble outcomes with the perforated line being

Blue Line: Trend Lines that constitute important sup-port / resistance or break levels

TA – Target area
MA – Moving average
R – Resistance
RA – Resistance area
MR – Minor Resistance
MS – Minor Support
MTR – Medium Term Resistance
MTS – Medium Term Support
SA – Support Area
S – Support
T – Target
* or ** – Significance of level

The intention of this analysis is to give the reader a visual picture of the most probable price path that could develop over time. This is enhanced by adding crucial levels where the proposed view becomes dubious and needs to be re-assessed (or confirmed). The benefit of this approach is that of an easy to understand and almost instantaneous grasp of the analysts view. This kind of analysis is not intended to be exact in predicting levels, and especially timing of moves, but to give a more general probability view that is easily understandable and unambiguous. The proposed “roadmap” gets adjusted over time as new price information becomes available. All technical views have re-assessment or negation levels where the proposed preference is no longer valid or needs to be re-assessed.