Connect with us

Hi, what are you looking for?

Wealthy Nation TodayWealthy Nation Today

Stock News

Mag7 ETF Leads as Bullish Pattern Forms – Charting the Trends and Trading Setups for the Mag7 Stocks

The Mag7 ETF (MAGS) formed another short-term bullish continuation pattern as it worked its way higher since the triangle breakout in mid September. This report will also analyze the long-term trends, highlight the short-term setups and compare performance for the stocks in this ETF.

First and foremost, MAGS is in a long-term uptrend with a new high in mid December and price well above the 200-day SMA. This ETF has been in a long-term uptrend since the big surge and breakout in November 2023. MAGS started trading in April 2023 so the 200-day SMA did not start until late January 2024. MAGS fell sharply in July 2024, but held above the 200-day SMA and resumed its uptrend with a new high in November.

The indicator window shows the MAGS/RSP Ratio, which measures relative performance. This line rises when MAGS outperforms the S&P 500 EW ETF (RSP) and falls when MAGS underperforms. MAGS is outperforming the broader market as the price-relative rises and hits new highs.

With MAGS in a long-term uptrend and leading the market, we want to be focused on bullish setups within this trend, such as bullish continuation patterns. MAGS and several other tech-AI related ETFs were featured in our report on Thursday. Medium-term, MAGS formed a triangle in July-August. This triangle formed within a long-term uptrend and was a bullish continuation pattern. MAGS broke out in mid September and worked its way higher the last five months.

More recently, the ETF formed a flag in October, a pennant in November and another flag here in January. These are short-term bullish continuation patterns. MAGS is breaking out of the flag this week and this signals an end to the pullback and a resumption of the uptrend. Re-evaluation support is set at 53.

Nvidia (+146%), Tesla (+97%), Amazon (+35%) and Meta (+66%) are powering MAGS with the biggest gains over the past year. Microsoft (+13%) and Apple (+15%) are the laggards in the group, but one is setting up and the other resumed its uptrend. This report continues at TrendInvestorPro where we analyze the trading setups for each of the Mag7 stocks. Click here to take a trial and gain immediate access.

/////////////////////////////////

You May Also Like

Editor's Pick

The U.S. Food and Drug Administration formally authorized Zyn nicotine pouches for sale after conducting an ‘extensive scientific review’ about their safety. In a...

Editor's Pick

The Federal Trade Commission said Friday that it is suing PepsiCo for illegal price discrimination, alleging the food and beverage giant gave an unnamed retailer more favorable prices...

Latest News

Ireland has joined South Africa’s genocide case against Israel, the International Court of Justice announced Tuesday morning. In a brief press statement, the ICJ...

Editor's Pick

The Department of Justice said Friday that it sued pharmacy giant Walgreens over allegedly dispensing millions of unlawful prescriptions. The DOJ said that Walgreens from August 2012 until the present...