The FANG index consisting of Facebook (FB), Amazon (AMZN) Netflix (NFLX) & Google (GOOGL), concluded the week on a very bearish tone, reversing all the gains made earlier in the week. With the market finishing at the lows of the week and back below support of 2,575 level. Based on how the index finished on Friday I’m expecting a move towards its 2,500 support in the week ahead.
The FANG index which in 2018 outperformed all of the US stock indices, is actually now under performing in 2019. The FANG’s has failed to reach or make a new all time high level from the Jan - April 2019 rally, unlike the S&P 500, Nasdaq index.
More importantly based on the price action that occurred over the last few weeks, saw the FANG index make a new lower low and lower high pattern on the failed rally attempt this week. This indicates that the FANG index is now firmly in a bearish position, with the sellers in control of the index and sitting below the 52 day moving average. This contrasts strongly with the DOW, Nasdaq & S&P 500 which have all failed to confirm a lower high as of yet.
Moving forward, depending on whether the index is able to hold the 2,500 level in the short term, will decide on whether the index moves straight pass 2,500 support level and make its way towards the 2,360 level over the next few weeks. Given where the current price action is relative to the distance from the 52 day moving average line, suggests the FANG index can easily reach the 2,360 on the next down leg move.
Join the Investing & Trading Community At Guruhaven
If you enjoyed this review of FANG Index, that was originally posted for members at Guruhaven, you can join the community free to receive regular macro news, trading ideas, original trading content, chart reviews from Crush The Market and the Guruhaven community of traders and investors.
Simply visit Guruhaven using referral code: Crush19 by http://guruhaven.com/membership
If you would like to take a look at this week newsletter of some of the best posts on Guruhaven covering SOX, GC_F, GLD, SLV, DIA, SPY, USO and more, simply for the link http://bit.ly/GuruHaven_WNL_12
Disclaimer: Please note all information presented here at Crushthemarket.com, Guruhaven weekly newsletter and within the Guruhaven.com website and its community platform are presented for educational purposes only, and does not represent financial advice in any way. If you require financial advice please seek a licensed advisor who can provide these services.
Via Social Icons
I am a private trader and equities investor that loves the trading and investing world, following the markets and everything in between.