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Earnings Week and Technical Outlooks of Mega-cap Technology Names

Whether looking at the performances over one-year, three-year, five-year, or 10-year, the Nasdaq Composite Index (COMPQ) and NDX 100 Index (NDX) have outperformed the S&P 500 Index (SPX) and other US indexes. However, in recent months, investors have become increasingly concerned about the run-ups of the mega-cap technology names and question their high valuations.


Investors and traders will again be scrutinizing key earnings announcements this week from some of the top technology names. Buying the Nasdaq 100 Index or the QQQ ETF has increasingly turned into a bet on a few mega-cap technology names such as AAPL, MSFT, AMZN, GOOGL, FB, and TSLA. The six stocks account for over half the value of the NDX Index. Even amid the pandemic and recession, all six names have rallied. While there may be more diversity among the components of the NDX Index, the concentration at the top is larger than many of its peer indexes.

It is reasonable to say investors may be influenced by the Q1 earnings released this week, at least on a near-to-medium term basis. The announced dates of the earnings are as follows: TSLA (4/26/21 after market close), MSFT (4/27/21 AMC), GOOGL/GOOG (4/27/21 AMC), AAPL (4/28/21 AMC), FB (4/28/21 AMC), and AMZN (4/29/21 AMC). Some high-profile technology-related names such as NFLX (4/20/21) and INTC (4/22/21) have already announced their quarterly earnings. Volatilities have increased on the day of the earnings announcements.


Can we expect volatilities to increase in the six largest market-cap names in the NDX Index over the next few days? Will this lead to the sell in May and go away seasonal trend? Or will this trigger a rotation back into the stable and liquid large-cap technology and growth names at the expense of the small-caps, micro-caps, SPACs, Cryptocurrencies, and other extended markets/sectors?


From a technical perspective, the following are the key technical levels for the six mega-cap technology names.


Tesla Inc. (TSLA – 738.20) Earnings (4/26/21)


Resistance 1 = 780-781 (1/29/20 low and 4/14/21 high)

Resistance 2 = 884.5-900.40 (1/8/21 and 1/25/21 all-time highs)

Resistance 3 = 1,000-1,022 (breakout target above 781)

Resistance 4 = 1,261 (breakout target above 900.40)


Support 1 = 692-694 (4/19/20 low and 50-day ma)

Support 2 = 619.5-624/591(2/23/21 low and Sep 2020 uptrend/3/30/21 low)

Support 3 = 539.5-559.5 (3/5/21 low and 200-day ma)

Support 4 = 466-502.5 (11/18/20 and 11/23/20 breakouts)


Microsoft Corp. (MSFT – 261.55) Earnings (4/27/21)


Resistance 1 = 260-262 (top of the Sep 2020 uptrend channel)

Resistance 2 = 267-269 (4/8/21 gap-up breakout target)

Resistance 3 = 293-295 (top of Sep 2020 channel breakout target)


Support 1 = 245-252 (4/8/21 gap-up breakout and extension of Sep 2021 trendline)

Support 2 = 238-242 (50-day ma and Jan 2021 uptrend)

Support 3 = 224-229/221.5 (3/4/21 low and bottom of Sep 2020 uptrend channel/200-day ma)


Alphabet Inc. (GOOGL – 2,309.93) Earnings (4/27/21)


Resistance 1 = 2,300 (4/5/21 gap-up breakout target)

Resistance 2 = 2,355 (top of the Mar 2020 uptrend channel)

Resistance 3 = 2,682-2,768 (Mar 2020 channel breakout targets)


Support 1 = 2,228-2,240 (4/12 and 4/22/21 lows)

Support 2 = 2,136-2,145/2,124 (4/5/21 gap-up breakout/50-day ma)

Support 3 = 1,996-2,040/1,945-1,949 (2/23 and 3/25/21 lows, bottom of Mar 2020 uptrend channel/bottom of 2/2/21 gap-up and bottom of Mar 2020 uptrend channel)

Support 4 = 1,775 (200-day ma)


Apple, Inc. (AAPL – 134.72) Earnings (4/28/21)


Resistance 1 = 135.5-138.5 (3/8/21 gap-up breakout target, and 9/2/20, 12/29/20, 2/9/21, and 4/20/21 highs)

Resistance 2 = 144.87 (1/25/21 all-time high)

Resistance 3 = 150-152 (top of the Sep 2020 uptrend channel)

Resistance 4 = 175-180 (breakout above 144.87-150 target)


Support 1 = 129-131 (4/21/21 low and 4/8/21 gap-up breakout)

Support 2 = 126-127 (extension of the Mar 2021 triangle breakout and 50-day ma)

Support 3 = 119-122 (bottom of Sep 2020 uptrend channel, bottom of Mar 2021 triangle, and 200-day ma)


Facebook, Inc. (FB – 303.04) Earnings (4/28/21)


Resistance 1 = 308-310 (4/14/21 gap down and 4/15/21 high)

Resistance 2 = 315.88 (4/8/21 all-time high)

Resistance 3 = 346.6-360.5 (Mar and Apr 2021 triangle breakout targets)


Support 1 = 296-300 (4/1/21 breakout and 4/22/21 low)

Support 2 = 281-284 (extension of Aug 2020 breakout and 50-day ma)

Support 3 = 271-278/264 (3/25/21 low, Dec 2021 breakout, and 200-day ma/Jan 2021 uptrend)


Amazon.com, Inc. (AMZN – 3,409.00) Earnings (4/29/21)


Resistance 1 = 3,434-3,496 (10/12/20, 2/3/20, and 4/19/21 highs)

Resistance 2 = 3,552.25 (9/2/20 all-time high)

Resistance 3 = 3,987-4,000 (breakout above 3,436 target)

Resistance 4 = 4,234 (breakout above 3,552.25 target)


Support 1 = 3,301.5 (4/22/21 low)

Support 2 = 3,182-3,190 (4/5/21 breakout, 50-day ma, and 200-day ma)

Support 3 = 3,073-3,086 (8/11/20, 12/11/20, and 1/12/21 lows)

Support 4 = 2,950-2,996 (11/2/20 and 3/26/21 lows)

Support 5 = 2,871-2,888 (7/24/20, 9/21/20, and 3/5/21 lows)


Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

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