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Technical Analysis of Top Nasdaq 100 Stocks Raises Concerns

Strategic Insights

— 1 min read

The top five most influential stocks in the Nasdaq 100 Index are showing mixed signals, with some facing potential breakdowns and others struggling to gain momentum. This analysis is part of Schaeffer's Market Observations, which provides unique and unbiased market insights.

Key Takeaways:

  • Microsoft (MSFT) remains trapped below resistance near 30, which has contained the shares for two years, indicating caution is warranted.
  • Qualcomm (QCOM) is the most impressive stock, but recent price action suggests the uptrend may be reversing, which could impact the Nasdaq 100's near-term performance.
  • Intel (INTC) has violated support and remains a concern for the NDX, with a 10-month moving average providing a possible target for a potential breakdown.
  • Cisco Systems (CSCO) is testing the water below its support zone, which could be a sign of underlying weakness or a potential bounce, but either way, it's not adding fuel to a Nasdaq 100 rally.
  • eBay (EBAY) shows a solid uptrend but has violated its 20-week moving average, requiring careful observation to determine if the stock has stabilized.

Statistics:

  • MSFT is trading close to resistance near 30, which has been a barrier for the stock for two years.
  • QCOM's uptrend is showing signs of losing momentum, with the stock struggling to pull away from its support zone near 66.
  • INTC's 10-month moving average is a possible target for a potential breakdown, which could further weigh on the stock.
  • CSCO's stock is oversold, which means a bounce is due, but a failure to rebound could indicate underlying weakness.
  • EBAY's recent pullback has raised concerns, with the stock needing to overtake its 20-week moving average to show signs of stability.

Sources:

  • Schaeffer's Market Observations
  • Schaeffer's Research website (www.SchaeffersResearch.com)
  • Schaeffer's Investment Research
  • Forbes
  • Barron's
  • Bernie Schaeffer's commentary "Technology? We Have a Problem" (www.schaeffersresearch.com/commentary/bernie_observations.aspx?ID=10670)

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