Nasdaq 100 Rally: Microsoft Leads, Tesla Lags

Nasdaq 100 rallies aren’t that uncommon over the previous few years however final week’s up transfer demonstrated a brand new twist for the Large 7 of the index that signify the big market capitalization names from the tech and social media world. Microsoft
MSFT
led strongly, because it often does, however Tesla
TSLA
is exhibiting particular weak point now.

Wall Avenue funding managers, below nice stress to outperform one another, are excited to suppose {that a} “delicate touchdown” for the economic system has landed and that rates of interest have bottomed. In order that they purchase the Nasdaq 100’s Large 7 like they’re going out of fashion and one other rally appears to have blossomed.

I don’t utterly purchase that evaluation as I point out proper right here, however let’s have a look at the worth charts.

Nasdaq 100, Microsoft, Tesla value charts.

The Nasdaq 100 each day chart is right here:

The rally coming off of the late October low is certainly in place now with a number of closes above the 50-day transferring common (the blue line) and a break above the early October excessive. The subsequent apparent goal is the July excessive simply above the 15800 stage. Observe the regular up pattern of the 200-day transferring common (the pink line).

Right here’s the weekly value chart for the Nasdaq 100:

If the index can clear that 15800 space, then the following goal could be the late 2021 highs up above 16500. The Nasdaq 100 has been trending upward, for probably the most half, for the reason that October, 2022 low. It’s a constructive, for certain, that each the 50-week and the 200-week transferring averages are up trending.

The each day value chart for Microsoft seems to be like this:

The Invoice Gates-led software program firm is doing significantly better, price-wise, than the Nasdaq 100 index as a complete. Final week’s new excessive of $369 takes out the mid-July excessive of $365. The inventory’s 50-day transferring common and its 200-day transferring common are each trending increased. Observe that that relative power indicator (RSI, under the worth chart) has reached an “overbought” stage.

The Microsoft weekly value chart is right here:

This week’s new excessive breaks out above the excessive from July. The 50-day transferring common is turned upward early this 12 months and continues increased. The 200-day transferring common developments increased relentlessly. The relative power indicator exhibits a probably “overbought” situation.

Right here’s the each day value chart for Tesla:

Discover how not like that is in comparison with the Microsoft each day value chart: there isn’t a new excessive for Tesla. In truth, at $214 it’s fairly a distance under the July excessive of $300. The inventory has closed under the 200-day transferring common. The 50-day transferring common is now trending decrease.

The weekly value chart for Tesla is right here:

Whereas Microsoft is now above its earlier weekly highs, Elon Musk’s automotive firm is way decrease. It seems to be as if the 50-week transferring common could also be about to cross under the 200-week transferring common, which might be a detrimental look.

Beforehand, the massive tech and social media shares of the Nasdaq 100 have tended to pattern collectively — however this time round, that’s not the case, as you’ll be able to see by evaluating the Microsoft and Tesla charts.

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