Time For The FAANG Stocks To Bite Back

The FAANG stocks (Facebook, Amazon, Apple, Netflix, and Alphabet) seem as if they are catching the attention of investors this week. Some of the FAANG stocks have underperformed within the tech sector so far this year, even though technology has been a relatively good performer. Some of the Stocks are begging to breakout higher and these stocks are beginning to see institutional flows coming back into them.  FAANG stocks seem like they are more technically appealing now than they have been in recent months.

Above is the daily chart for Amazon. (Ticker Symbol: AMZNWealth Strength IndexAMZN is Moderately Flat and trending Down)  After peaking in the third quarter of 2018 at just over $2000.00, the stock spent the fourth quarter of 2018 in a correction, giving back almost over 33% from its all-time high on September 4th, 2018 at $2050.00.  From the looks of this chart, if Amazon can break out up through this two-month price channel (highlighted in purple) and get above $1,800.00, the stock could have a shot at going to retest the 2050 highs from last year.


(Chart above courtesy of www.tipranks.com)  

Based on a survey of 36 analysts across Wallstreet, the average price target for Amazon’s stock is  $2118.61. Based on that number, the stock is priced at a discount relative to Wallstreet’s analysts could be considered undervalued around current levels near $1,700.00.  

Facebook (Daily Chart) (Ticker Symbol: FBWealth Strength IndexFB is Moderately Flat and trending Up) recently found price support at the end of 2018 putting in what looked like a double bottom reversal pattern.  It then proceeded to break its downtrend and continue higher. Good earnings kept the stock trucking higher in late January. If the momentum higher continues, it looks like Facebook’s stock could take a look at the 200.00 dollar price again.  

(Chart above courtesy of www.tipranks.com)  

Based on a survey of 36 analysts across Wallstreet, the average price target for Facebook’s stock is $192.08.  Based on that number, the stock is priced at a discount relative to Wallstreet’s analysts and could be considered undervalued around current levels near 173.50.   


Apple (Daily Chart) (Ticker Symbol: AAPLWealth Strength IndexAAPL is Moderately Flat and trending Up) found its price support just below the $150.00 price level at the begging of the first quarter of 2019.  The stock was pulling back from its all-time high of over $230.00, boasting over a 1 trillion dollar valuation! The stock pulled back in the fourth quarter of 2018, only to resume its long term uptrend at the beginning of this year.  Apple is holding its uptrend from the start of the year and the stock is breaking its downtrend from the highs made around $230.00 in 2018. If the momentum continues higher, It seems like the next natural target would be the 200-day Moving Average just above $190.00, followed by the psychological $200.00 level.  

(Chart above courtesy of www.tipranks.com)  

Based on a survey of 36 analysts across Wallstreet, the average price target for Apple’s stock is $178.37.  Based on that number, the stock is priced at a premium relative to Wallstreet’s analysts and could be considered overvalued around current levels near 182.60.   

Netflix (Daily Chart) (Ticker Symbol: NFLXWealth Strength IndexNFLX is Moderately Down and trending Down) had a great run in 2018 lead by the move deeper into its original content production.  In the first half of 2018, Netflix’s stock rallied over 100%. After peaking over $420.00 in the third quarter of 2018, it corrected and gave back more than 75% of its move higher.  The stock found support at the $235.00 area and has since rallied over $125.00. It now seems to be breaking higher out of a consolidation channel highlighted in purple. Netflix is currently trading near $361.00.  

(Chart above courtesy of www.tipranks.com)  

Based on a survey of 36 analysts across Wallstreet, the average price target for Netflix’s stock is $401.81.  Based on that number, the stock is priced at a discount relative to Wallstreet’s analysts and could be considered undervalued around current levels near 351.25.   

Alphabet (Daily Chart) (Ticker Symbol: GOOGLWealth Strength IndexGOOGL is Moderately Flat and trending Up) rallied to a peak of just over 1290.00 in the third quarter of 2018.  It also pulled back with most of the tech sector in Q4 of 2018. The stock found some support around the very much psychological $1,000.00 price level and has since rallied over 20%.  It has broken its downtrend from its highs in 2018 and is above its 200-day Moving Average. Alphabet’s stock is currently trading just over $1,205.00.

(Chart above courtesy of www.tipranks.com)  

Based on a survey of 36 analysts across Wallstreet, the average price target for Alphabet’s stock is $1,349.88.  Based on that number, the stock is priced at a discount relative to Wallstreet’s analysts and could be considered undervalued around current levels near $1,203.87.  

Year to date all of the FAANG stocks are up with double-digit returns for each of them.  Even though relative to the technology sector, a few have been underperforming, the FAANG stocks have outperformed the market so far this year.  Will this outperformance continue? The charts seem as if they want to break higher and may be saying so!

 

 


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