This week's Investor's Business Daily Breakout Stocks Index features three Magnificent Seven stocks: Meta Platforms, Amazon.com and Google-parent Alphabet. Three IPO Leaders — Life360, Jefferson Capital and Karman — also join the index.
What is one telltale theme that runs across these and several others on this screen? It can be summed up in five words: action around key moving averages.
As Meta and Amazon test support at their 50-day lines, Google stock has soared well beyond that benchmark and its 21-day exponential moving average on a favorable antitrust ruling. Meanwhile, Karman and Life360 stand above both moving averages. Finally, Jefferson Capital — the latest IPO Stock Of The Week — bounced off its 21-day line Tuesday, rising again Wednesday. But having only gone public in late June, it hasn't traded long enough to establish a 50-day moving average.
Moving Averages In Focus For Meta Stock, Amazon, Google And More
For investors using stock charts, moving averages reveal where stocks are finding support or hitting resistance. That provides important clues to a company's technical strength or weakness.
Including Meta stock, Amazon, and Google, as well as Life360, Jefferson Capital and Karman, a total of 46 names make this week's Breakout Stocks Index. Others, such as AppLovin, GE Aerospace, Capital One Financial and Charles Schwab also joined the list.
See Who Joins Meta, Amazon And Google On The IBD Breakout Stocks Index
The Nasdaq and S&P 500 already trade above their 50-day lines. Now these indexes are pushing to decisively clear their 21-day exponential moving averages. So now is a good time for investors to see where their stocks to watch stand in relation to those benchmarks.
Using charts to identify floors of support and ceilings of resistance provides a powerful way to monitor current or potential holdings. The answers found by doing such an exercise give a powerful advantage when determining how to buy stocks and when to sell.
Google Stock Climbs On Judge Mehta Ruling In Search Antitrust Case
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
