Chart Events Forming in Key Tech Stocks (MSFT, AMZN, RIMM, ORCL, QCOM)

It is normal to see pullbacks.  The problem is that most market pullbacks in the last five months have been rare or short-lived since the near-depression levels of early March.  But it has also been hard to not notice the stalling out of some key tech stocks, and today we are seeing some critical long-term moving average violations as a result.  We have looked as Stockcharts.com for these reviews and links through to show the 50-day and 200-day moving averages.   Microsoft Corp. (NASDAQ: MSFT), Amazon.com Inc. (NASDAQ: AMZN), Research in Motion Ltd. (NASDAQ: RIMM), Oracle Corp. (NASDAQ: ORCL), and QUALCOMM Inc. (NASDAQ: QCOM) have all hit our longer-term initial screens for the day based 50-day moving averages.

Microsoft Corp. (NASDAQ: MSFT) is still well above its 200-day moving average ($20.09) but it has dipped under its 50-day moving average of $23.37. CHART

Amazon.com Inc. (NASDAQ: AMZN) is also way above its 200-day moving average ($67.47) but today it has broken under its 50-day moving average of $83.79. CHART

Research in Motion Ltd. (NASDAQ: RIMM) is still well above its 200-day moving average ($57.36) but broke under its 50-day moving average yesterday morning.  That level is $74.68 today, but the stock is now down at $72.12. CHART

Oracle Corp. (NASDAQ: ORCL) is challenging its 50-day moving average.  That level is $21.10 today and shares are at $21.30 today after trading as low as $21.03.  If teh stock is weaker tomorrow this will become more of an issue because Oracle’s 50-day moving average is likely to be two cents higher tomorrow if today’s levels hold. CHART

QUALCOMM Inc. (NASDAQ: QCOM) has also been in the process of testing its 50-day moving average for four of the last five trading days.  The 50-day moving average is $45.60.  The last trade this afternoon was $45.68, but shares traded as low as $45.41 today.  CHART

Again, this is something that often just happens as markets start to sell-off or as they take breathers.  But these two 50-day and 200-day moving averages are often what technicians start to look at as the first of several reviews for longer-term support and resistance levels.  The problem is that many of these levels are getting hit at a time when many market participants are starting to see lighter and lighter market interest as we get closer to the second half of August.

Jon C. Ogg
August 11, 2009