After a fantastic year for the Magnificent Seven stocks, IBD Leaderboard members Nvidia, Tesla. Amazon.com, Microsoft and Meta Platforms are set to kick off 2024 with a test.
The first test on the first trading session of the year comes at the 21-day exponential moving average. AMZN, META, TSLA, MSFT and NVDA stock are all looking for support or testing resistance at that line. That mirrors the action in the tech-heavy Nasdaq.
Not surprisingly, other IBD Leaderboard stock are sloshing about in the same boat. ELF Beauty, Datadog and ServiceNow, for example, are also testing their 21-day lines. Meanwhile, DraftKings has, so far, lost its bet on holding support at its 50-day moving average.
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Magnificent Seven Stocks: Nvidia Leads 2023 Performance
Showing the power of the Magnificent Seven megacaps last year, Nvida, Meta and Tesla stock all made the list of the best stocks of 2023.
NVDA stock led with a gain of 238.9%, followed by Meta's 194.1% rise. In further evidence of the impressive rebound of the tech sector following a dismal 2022, Tesla stock delivered 101.7% surge.
Fellow IBD Leaderboard companies Uber Technologies (149% gain), Shopify (124.4%) and Zscaler (98%) also received recognition among the best 100 stocks of last year. These growth stocks are also testing their 21-day moving averages as the new year gets underway.
As our report on the 100 Best Companies of 2023 shows, the stellar performances of Nvida, Meta and others easily topped the 40%-plus gain for the Nasdaq composite.
Amazon, Microsoft, Nvidia Stock In Or Near Buy Range
Microsoft, Amazon stock and others remain in buy range as they test their 21-day lines to start the new year. Meta stock managed to close right around its 21-day benchmark at the top of the buy zone cleared at the end of last year.
Nvidia stock, which has formed an early stage flat base, trades within striking distance of the new 505.48 buy point. Like Meta, it also closed right around its 21-day benchmark.
As investors try to gauge what's in store for 2024, remember to avoid predictions and take overly bullish, as well as excessively bearish, headlines and with ample servings of salt. Instead, focus on the action in stock charts.
Price and volume movements in Nvidia stock, Meta and others provide a more reliable measure than personal views or pundit predictions.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
