Cycles Research screens reveal that big-cap tech remains in a leadership role. The NASDAQ is expected to remain in first place. This status has not changed since last autumn even through corrections. The leadership has shifted within this group. Former leading stocks are very over extended. Here are a pair of stocks that are likely to excel in the coming summer rally.
Tesla can be purchased despite the recent rally. The up move of the last week broke through the weekly downtrend line. This will eventually lead to a breakout from a 2-year triangle. The monthly cycles tell us that the price uptrend will extend. Relative strength has been turning up since March. There are higher lows in weekly momentum and monthly momentum is oversold. This is one of the few NASDAQ stocks that are oversold on a longer-term basis. The $260 level is the short-term target with $290 as a next objective.
Tesla Daily, Weekly, Monthly
Monthly Tesla Cycle
META is another big cap tech stock that is gaining momentum. We can see that the share price has hit a new high, but is not yet overbought weekly. The stock is breaking out to a new high supported by momentum both weekly and monthly.
META Daily, Weekly, Monthly
The daily chart shows the breakout on Friday supported by higher lows in momentum and a jump in relative strength. The $625 level is a reasonable objective.
META Daily
The weekly cycle was signaling the upturn in price as we see below.
Weekly META Cycle
The monthly cycle suggests a September-October correction, but no major high until Q1 of 2025.
Monthly META Cycle
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