Some experts say that the technology sector is what leads the entire stock market, both up and down. There might be some truth to this, so it behooves traders to pay close attention to the leaders in this vital component of the markets, not to mention their big stock charts.
This was evident on Tuesday, which presented an interesting snapshot of a market in flux. The tech-heavy NASDAQ Composite struggled on this day and seemed to weigh on the much broader S&P 500.
Monitoring the more popular and respected stocks in the technology sector can help us understand why the markets might be moving in one direction or the other. And so, today’s big stock charts will feature names that are well-known in the all-important tech sector.
Microsoft (MSFT)
Often considered a bellwether asset, Microsoft (NASDAQ:MSFT) stock is among the most famous tech names in stock market history. An astonishing $1.3 trillion market cap proves this point. Other companies sometimes look to Microsoft for leadership, but where is the stock leading us now?
- Tuesday handed MSFT investors a decent-sized red candlestick. The tiny upper and lower wicks mean that it’s a marubozu candle. Since it’s a red marubozu, this tells us that the sellers put downward pressure on the stock price for the entire trading session.
- The stock is at least still above the 20-day, 50-day, and 200-day moving averages. Yet, another day or two like what we saw on Tuesday could start a series of breakdowns through those lines on the chart.
- Strong support is at $135, which admittedly is far away. More important at the moment is the resistance level of $190.
Advanced Micro Devices (AMD)
There’s no denying that Advanced Micro Devices (NASDAQ:AMD) is one of the world’s most prominent chipmakers. Indeed, this California-based company manufactures microprocessors for a wide variety of devices. But does the AMD stock chart suggest gains for shareholders now?
- Again, we have a candlestick on Tuesday with hardly any upper or lower wick. The candle for AMD stock isn’t huge, but it is red. The bulls will want to see a turnaround, preferably on rising volume, over the coming days.
- As far as the three main moving averages are concerned, AMD stock held above all three of them even on a red day like Tuesday. That’s surely a relief to the bulls. Still, there’s no room for complacency here as the bulls and bears battle for control of the price action.
- Tuesday confirmed that the $57.50 level is a strong resistance level. It’s also a short-term high point, so the bears seem to be asserting this as a “line in the sand,” at least for now.
Nvidia (NVDA)
Gaming market experts in America and worldwide should know the name Nvidia (NASDAQ:NVDA) quite well. This company supplies graphics-processing parts on a massive scale. A glance at the Nvidia chart might provide some insights into the future price movements of this celebrated tech sector name.
- Yet again, we’ve got a rather bearish-looking marubozu type of candlestick for Tuesday. However, the daily trading volume for NVDA stock has been declining throughout April. Thus, the bears cannot effectively claim that there’s conviction behind Tuesday’s price move.
- Nvidia stock is clearly above all three of the major moving averages seen on the chart. Plus, all three of those lines are trending upwards, more or less. So, it’s fair to say that the bulls are still in control.
- Expect the $310 level to provide moderate resistance if and when NVDA stock gets to that point. It’s been there before and was rejected, so that’s a place for investors to consider some profit taking.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.