The Ugly, Broken Price Charts Of Amazon, Meta (Formerly Facebook) And Netflix

Big name, big tech stocks aren’t supposed to drop 25% in very short periods of time. Lately, however, it’s become almost the norm for the NASDAQ-100’s most well-known components. Money managers are not hesitating to unload when earnings expectations are not met.

The daily price chart for Amazon looks like this:

As you can see, the price has returned to the January level where it broke down at about 3200. It’s not unusual to see this kind of action after a big drop — now that it’s back to that level, sellers return to their selling and it’s tough to keep going higher. Note that Amazon’s price remains below both the 50-day moving average (the blue line) and the 200-day moving average (the red line) and that both have turned downward.

Amazon’s weekly price chart is here:

On this longer-term view, you can see how this big drop took the stock below the late 2020 lows and the early 2021 lows of just under 2900. It’s rebounded on decent volume but the price action is clearly diverging from the momentum indicators above and below the price chart. Amazon’s 50-week moving average is about to turn down as well.

Meta daily price chart:

Not too long after CEO Mark Zuckerberg changed the name of his company, the stock tanked in a major way. It’s easy to see, however, that Meta had begun to decline steadily from all the way back in September. This February gap down on huge volume is a significant change for the way what was known as “Facebook” used to trade. So far below both moving averages so quickly — not a good look.

Meta weekly price chart:

What a drop, huh? Down below the 200-week moving average on the heaviest weekly volume ever. The 50-week moving average is about to turn downward. Meta stayed above the March, 2020 pandemic lows, that’s about the only positive I can see on this sad chart.

Netflix daily price chart:

Yet another big gap down on yet another big name NASDAQ-100 equity formerly known for occasionally gapping up. After sinking like a rock in mid-January, Netflix has been attempting a rebound in February but it looks weak so far. The 50-day moving average began trending down in December, 2021 and you can see that it’s crossed the 200-day moving average.

Netflix weekly price chart:

Reid Hastings, the Netflix CEO, purchased a nice chunk of the stock near the January lows and that seemed to help for a few days. In the meantime, it remains below both significant moving averages and that 50-week has already begun its descent. Note how the stock did not hesitate to take out the 450/475 level that had provided support from mid-2020 to mid-2021.

Not investment advice. For educational purposes only.

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