US Technology Companies at Great Risk
Let's take a look from a fundamental and technical perspective;
If the protests against Trump, who has been in the presidential seat for 3 months, gain strength and reach a level that disrupts economic activity, uncertainty pricing increases in the markets.
Technology-weighted indices such as NASDAQ sell faster in such periods of uncertainty because they are in the ‘risky asset’ class.
The FED's interest rate cut expectations were first postponed, and now the possibility of cancellation is on the table. This creates negative pressure for technology stocks.
2025 Q1 balance sheets have not yet been fully announced. However, growth rates are slowing in many major technology companies, which means an extra threat to NASDAQ.
Let's take a look at the scenarios that could happen this week;
🔴 Protests increase, if the security problem grows:
NDX may fall below 16,700 again.
If panic sales come into play, there may be a decline to around 15,000.
🟢 If protests are quickly brought under control:
Buying comes from 17,000 level, reaction rise starts.
18.500 - 19.000 band can be retested.
🔸This week there was a very sharp decline of -9.77
🔸It is currently at 17.397, which corresponds to the middle band of the logarithmic channel (black dashed line).
🔸16,764 - Persistence below this level may lead to sharper selling.
🔸If the price closes weekly below 17,000, stronger support around 15,000 may be tested.
🔸This decline may also cause large investors to switch to ‘risk off’ mode.
Let's take a look from a fundamental and technical perspective;
If the protests against Trump, who has been in the presidential seat for 3 months, gain strength and reach a level that disrupts economic activity, uncertainty pricing increases in the markets.
Technology-weighted indices such as NASDAQ sell faster in such periods of uncertainty because they are in the ‘risky asset’ class.
The FED's interest rate cut expectations were first postponed, and now the possibility of cancellation is on the table. This creates negative pressure for technology stocks.
2025 Q1 balance sheets have not yet been fully announced. However, growth rates are slowing in many major technology companies, which means an extra threat to NASDAQ.
Let's take a look at the scenarios that could happen this week;
🔴 Protests increase, if the security problem grows:
NDX may fall below 16,700 again.
If panic sales come into play, there may be a decline to around 15,000.
🟢 If protests are quickly brought under control:
Buying comes from 17,000 level, reaction rise starts.
18.500 - 19.000 band can be retested.
🔸This week there was a very sharp decline of -9.77
🔸It is currently at 17.397, which corresponds to the middle band of the logarithmic channel (black dashed line).
🔸16,764 - Persistence below this level may lead to sharper selling.
🔸If the price closes weekly below 17,000, stronger support around 15,000 may be tested.
🔸This decline may also cause large investors to switch to ‘risk off’ mode.
For more you can follow me on X. @UgurTash
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For more you can follow me on X. @UgurTash
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.