The "Magnificent Seven" megacap tech stocks are nearing a technical breakout that could send the group to fresh highs, according to Fundstrat. The call comes as the basket's dedicated ETF traces a chart pattern flagged by the firm's technical strategist, even as the Nasdaq Composite slipped.
The Magnificent Seven basket of megacap tech stocks is on the verge of an imminent breakout that should spark a sharp rally in the large-cap tech sector, according to Fundstrat. The firm's head of technical strategy, Mark Newton, made the call in a note published late Monday.
Newton pointed to the Roundhill Magnificent Seven ETF, which trades under the ticker MAGS, as the basis for the outlook. He showed the fund forming an ascending triangle pattern that is nearing resolution, a setup he said could propel it to new highs.
The Nasdaq Composite slipped 0.56% to 26,186.41. Alphabet climbed 3.22%, and Meta added 2.71%. Nvidia dropped 3.36% the same day.
Source: MarketWatch.com (snippet-based)
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