Markets have been a disaster.
Fear is mounting. Trade wars are intensifying. There are fears of more tariffs, inflation and even a potential recession. However, after a massive 3,000-point drop in the Dow Jones, a good deal of tension is priced into the market. Plus, we’re starting to see pockets of strength in oversold stocks, especially beaten down technology names, including:
Nvidia (NVDA)
Over the last few weeks, Nvidia fell from about $142 to a low of $105. However, it’s starting to pivot from support dating back to September. It’s also starting to bounce from over-extensions on RSI, MACD and Williams’ %R. From its last traded price of $116, we’d like to see the tech giant rally back to $130 initially.
We also have to consider that Nvidia CEO Jensen Huang is expected to deliver a keynote presentation at Nvidia GTC on Tuesday, March 18.
As noted by Forbes.com, “This year’s GTC promises groundbreaking announcements, industry insights, and a future vision that will captivate developers, researchers, and tech leaders. When Mr. Huang speaks, Wall Street and the tech industry listen very carefully. Known for shaping the trajectory of AI technologies, Huang’s address will highlight Nvidia’s achievements and unveil innovations in new processors, software, and services that will set the tone for AI’s direction in the coming year.”
Microsoft (MSFT)
Microsoft (MSFT) has become unbelievably oversold at support dating back to early 2024.
It’s also over-extended on RSI, MACD, Williams’ %R and Full Stochastics. From its current price of $380.45, we’d like to see the tech giant retest $400 again initially.
Helping, analysts at Wedbush just said they expect for artificial intelligence stocks, which includes Microsoft, to reach record highs this year. Wedbush believes policy uncertainties will calm down in the months ahead, and this period of downward pressure presents a “golden opportunity,” added Seeking Alpha.
The firm added, “We remain firmly bullish and believe tech stocks will ultimately make new all-time highs during the second half of 2025 despite a disaster panicked selloff to start the year.”
Amazon (AMZN)
Amazon (AMZN) is also severely oversold on RSI, MACD and Williams’ %R. From its last traded price of $199.70, we’d like to see it retest $215 again shortly. In our opinion, the pullback with Amazon is a gift to investors.