On 26 September, I posted an article on the 4 FANG stocks approaching support.In a development that could be interesting for technical traders they are now approaching resistance

I think the charts below speak for themselves. In all cases, I would prefer to wait for signs that price was beginning to reject resistance, rather than simply sell because it arrives at resistance. If resistance levels are rejected it could position for price to return towards support and a possibility that, this time around, support could be broken

The Amazon chart looks particularly interesting. If it peaks around the higher of the 2 dashed resistance lines it will set up for a possible complex head and shoulder. This is like a standard head and shoulder except there are 2 shoulders on either side.

The complex head and shoulder is not completed unless the neckline support is broken. One way of handling this situation is to sell with a stop above the right shoulder when it forms. The stop can then be tightened if price approaches the neck line guarding against the possibility that Amazon bounces off it yet again.




Google (Alphabet)




CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.