$MAGS Monthly Chart Signals Caution: What’s Next for the MagnifiMacro Outlook Based on the Monthly Chart ⚠️⚠️⚠️⚠️
The Roundhill Magnificent Seven ETF CBOE:MAGS has had an incredible run, but the monthly chart is sending some cautionary signals. December closed with a massive sell-off wick, followed by a weak January close. This kind of price action suggests potential exhaustion in the near term.
The last time we saw a similar setup was in July, when a sharp sell-off wick led to a 23% drop before the market resumed its upward trend. Does this mean CBOE:MAGS has to plummet again? Not necessarily, but with market uncertainty around the tariff war and the monthly chart showing signs of stagnation, a steeper retrace could be on the horizon before any further upside. It’s possible we’re seeing a temporary top for now.
Short-Term Outlook:
As long as price holds above the yearly open, I expect a retest of the $57 resistance level. However, for the macro trend to turn bullish again, we’d need to see strong momentum and a solid close above $57 by flipping this level from resistance to support. Until then, the current price action feels more like a dead cat bounce than a sustainable recovery. Expecting volatility in the near term.
