Magnificent Seven & Hot Stocks: A Technical OverviewHello,
The past few days and weeks have brought a lot of movement in the stock market, and things seem a bit more redish than before. However, these kinds of moments also bring good opportunities—if you know where to look.
That’s why I decided to take a closer look at the some stocks from Magnificent Seven, scan some of the top market cap stocks, and give a short overview of what’s happening and what to watch.
Since technical analysis helps bring clarity in uncertain times, I will go over some key levels and liquidity zones that could present good opportunities. I will also cover a few stocks that are currently making headlines and generating a lot of interest in the investment world—such as Robinhood (HOOD) and Palantir (PLTR).
Let’s see what the market has to offer.
Microsoft (MSFT)
Microsoft has not made any major moves in the past few weeks, but selling pressure has started to build up, and the stock is now trading at its lowest levels in the past six months.
The most interesting and strongest support area is between $290 and $300. This is a level worth keeping an eye on.
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Amazon (AMZN)
Yesterday, I got an alert from TradingView that AMZN has dropped into an interesting price zone after a small correction. If you don’t already use alerts, I highly recommend setting them up—keeping track of every stock manually is nearly impossible.
The $175–$210 zone is technically solid. Yes, it’s a wide range but there are different strategies you can use here.
Amazon (AMZN) – What to do?
If you don’t own AMZN yet, this could be a good spot to start building a position slowly. Buy a little in the upper part, a little in the middle, and a little in the lower part of this zone to get a balanced entry.
If you already own AMZN, I’d rather wait and aim for the middle of the range if you want to add more. If the stock takes off from here, you already have a position, so there’s no real FOMO. No need to rush.
Of course, this is just a technical view—you should still analyze the fundamentals and your investment thesis. The technicals have spoken and now it’s time to listen to the fundamentals. That way, you get the full picture and can react accordingly.
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Alphabet (GOOG)
GOOG failed to break through the psychological $200 level. It has tested this level multiple times since the start of the year, but the result has been red candles.
If you already own the stock and are considering adding more, or if you are thinking about an entry, the $140–$160 zone is worth watching. At the moment, I don’t see a more logical technical entry.
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Meta Platforms (META)
META has dropped 12% from its all-time high in just a few weeks. The stock has now slowly come to, what I call, a "picking zone" (if you have a better name for it, let me know! :D)—meaning a price range where those who make regular buys might want to pay attention.
Right now, the key levels to watch are ~$612 and ~$500, with $500 being the stronger level. The price has consolidated there a bit longer than around $612, and it also acts as a psychological support level.
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Berkshire Hathaway (BRK.B)
Berkshire has reached what I consider a profit-taking zone. If your fingers are itching and your wallet is waiting for a top-up, then why not? This doesn’t mean selling everything, but it could be a good spot for a partial exit—especially if you need capital for something else.
Why is this a logical profit-taking point?
Looking at previous price behavior around round numbers, we can see a pattern that works every time and your money can be “stuck” for years.
When a stock approaches a big round number for the first time, it tends to:
Consolidate – move sideways for a long time.
Get a strong correction – like Berkshire has done before.
Let’s make the round number concept clearer.
Imagine a stock price starts moving up from $30 and eventually reaches $1000.
Within this range, the key round numbers for me are: $50, $100, $200, $500, and $1000. These are levels where major market reactions often occur or levels that I trust the most as a criterion.
Let’s take Berkshire for example, touching these numbers for the first time:
$50 → 50% drop, took 5 years to recover.
$100 → Another 50% drop, also took 5 years to break higher.
$200 → Multi-year consolidation, 20% drop.
$500 → And now we’re here—your choice!
In a long-term portfolio, there are essentially two types of sales:
The investment thesis is no longer valid
Capital is needed for another purpose
If neither of these conditions is met, there’s no real reason to sell. However, if you need capital within the next six months, this could be a good point to do so. Historically, we’ve seen a pattern where the stock either undergoes a correction or remains stagnant for an extended period.
That makes it a perfect candidate for profit-taking—and if a correction does happen, there’s always the opportunity to buy back at lower prices.
At the moment, buying this stock could mean it stays within this price range for a few years, so I wouldn’t rush into new purchases.
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Tesla (TSLA)
Historically, Tesla has followed technical analysis well due to its high volatility. It reflects market psychology very clearly, leaving visible footprints on the chart...
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I also cover these topics in-depth over on my Substack channel, where I break down the full picture and share my insights on the rest. If you want the complete breakdown and my take on what’s next, head over to my Substack (ENG).
🔗 Find the link in my BIO under the Website icon or simply copy and paste it directly.
See you there! 👀
Cheers,
Vaido
