Alphatrends Technical Analysis - Brian Shannon
Brian Shannon analyzes recent price action in Nvidia and Tesla, noting that Nvidia has shown failed breakout attempts with only grinding upward movement lacking strong leadership. Tesla is positioned near prior support levels, and Shannon suggests waiting for a pullback to build energy before continuing higher.
Summary
In this technical analysis segment, Brian Shannon examines two major stocks from the MAG (Magnificent Seven) group. Regarding Nvidia, Shannon observes a pattern of breakout failures over the past couple of weeks, where the stock broke out at resistance levels but failed to sustain those moves. Despite these failed breakouts, Nvidia continues grinding higher with higher highs and higher lows, though Shannon expresses skepticism about where real leadership is coming from in this MAG stock, suggesting the move lacks conviction. For Tesla, Shannon notes the stock is positioned right against a prior significant band of support. He identifies the year-to-date anchor as a potential upside target that Tesla may move toward. However, Shannon expresses a preference for Tesla to pull back down toward the anchor level established from the recent low, allowing the stock to build energy before continuing its advance higher. This preference indicates Shannon's view that consolidation and base-building would be healthier for a sustainable continuation move.
Key Insights
- Nvidia has experienced multiple failed breakout attempts over recent weeks at resistance levels, followed by grinding higher price action with higher highs and lower lows but lacking strong leadership
- Shannon questions where real leadership is coming from in Nvidia despite continued upward grinding, suggesting the move lacks conviction or strength
- Tesla is positioned directly against a prior significant band of support with the year-to-date anchor serving as a potential upside target
- Shannon prefers to see Tesla pull back down to the anchor level established from the recent low before continuing higher, rather than immediately moving to the upside
- Shannon advocates for price consolidation and energy building through pullbacks before continuation moves, as opposed to immediate continuation from current levels
Topics
Transcript
[0:01] Nvidia, you know, this this stock over the last couple weeks, it broke out right here and then failed. It broke out right here and then failed. So, it's still just kind of grinding higher. If you take a look at the most recent action, it's got higher highs and higher lows, but it's just grinding. It's really I don't see where the real leadership is coming in from in the uh MAG stock. Um Tesla is right up against this prior bigger band of support in [0:31] here and you've got the year-to- date anchor. It may continue to move up to there. I'd still rather see it pull back down to the anchor off of this low…
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