Reviewing the technical picture of major stocks ahead of earnings including META, TSLA, MSFT, AAPL, MA, and V.
Earnings season kicks into high gear this week, with over 100 companies from the S&P 500 Index set to report earnings. This includes many of the largest and most followed stocks in the index, such as four of the “Magnificent 7” names. While the Magnificent 7 has been anything but magnificent so far this year, most investors have high exposure to those stocks given their heavy weighting in most major market benchmarks. Other important stocks to report this week include Visa V and Mastercard MA. Even though these names are included in the financial sector, some would argue that these stocks show a truer perspective on the modern consumer as their credit cards represent over 77% of all credit card activity in the US (source: WalletHub). Today, we will review the current technical picture of these stocks, highlighting key support and resistance areas to monitory heading into each earnings report.
Magnificent 7 Names Reporting this Week:
Meta Platform Inc. (META) – Earnings Expected 1/28 PM – META has shown technical deterioration over the past few months, falling from a 5 to a 3 TA rating. The stock saw a sharp drop to kick off the year, moving to a sell signal before ultimately reversing back up into a column of Xs to initiate a shakeout pattern. The weight of the technical evidence is mixed; the long-term picture remains intact while the near-term picture has shown weakness. The shakeout pattern would be completed with a potential triple top pattern just one box higher at $680. Further resistance from there can be seen at $752, near the top of the current trading band. Initial support can be seen at $600 with further support at $584.
Tesla Inc. (TSLA) – Earnings Expected 1/28 PM – TSLA has been one of the few mega-cap names to show notable technical improvement in recent months. It ticked up to a 5 for 5 TA rating at the end of November when it pushed back to a positive trend. We did see a pullback after that sharp move higher, but the stock seems to be consolidating around the middle of its trading band ahead of earnings. Initial support is seen at $424 with further support seen at $396, the current location of the positive trend line, and $384. Overhead resistance may be seen at the all-time chart high of $496.
Microsoft Corportation (MSFT) – Earnings Expected 1/28 PM – MSFT has been one of the more resilient members of the Mag 7, but did get downgraded two weeks ago to a 4 for 5 TA rating. Still, this stock has maintained an RS buy signal against the market since 2015 and been in a positive trend since last April. The recent market action saw MSFT fall to a sell signal and drop another seven Os, negating the shakeout pattern set-up. The stock then reversed back into a column of Xs to be positioned directly in-line with the middle of its trading band ahead of earnings. Initial support can be seen at $440. Overhead resistance can be seen at the all-time chart highs of $552, seen last July and October.
Apple Inc. (AAPL) – Earnings expected 1/29 PM – While Apple has come under fire as a corporation for not fully embracing the AI wave, AAPL the stock has maintained a very consistent technical picture since pushing back to a positive trend last July. The stock has rattled off five consecutive buy signals and possess a 5 for 5 TA rating. Recent chart action saw AAPL reverse back up into a column of Xs at $260, just below the middle of its trading band. Initial support can be seen at $244 with further support seen at $228 and $212, the current location of the positive trend line. Overhead resistance may be seen initially at $288, the all-time highs reached last December.
Major Credit Cards:
Mastercard Incorporated Class A (MA) – Earnings Expected 1/29 AM – MA has seen some weakness over the past few weeks to currently be positioned at a spread triple bottom formation at $528. This is also testing the positive trend line that has been in place since December 2024. That puts the 3 for 5’er in danger of falling into weak attribute territory for the first time since January 2022. Further support past the current level can be seen at $488 and $472. Overhead resistance may be seen initially at $584 and at the all-time highs of $600.
Visa Inc. (V) – Earnings Expected 1/29 PM – Visa represents approximately twice the credit card users as Mastercard, representing over half of the credit cards in the US. The stock V has essentially been consolidating since the beginning of 2025. The stock peaked at $372 in June began to trend lower until December. The past several weeks have seen some back and forth action that recently led the stock to move back to a negative trend two weeks ago. The technical picture is mixed; the near-term picture has shown uncertainty while the long-term relative strength picture still remains intact. V is close to support at $320, with further support seen at $316 and $300. Overhead resistance may be seen initially at $356.
