Microsoft & Alphabet: Megacaps Cling to Levels Before the Fed

21 thg 9, 2022

The Federal Reserve’s hawkish policies this year have punished megacap growth stocks, as most traders know. The resulting gloom has dragged two of the market’s four trillion-dollar companies to potentially important levels: Microsoft and Alphabet.

Both hit new 52-week lows yesterday and are near levels where they bounced earlier in the year.

MSFT slipped below $240 for the first time since May 2021, but rebounded to close above that level. It’s also sitting at the price where it bounced in June (an earlier 52-week low).

GOOGL’s chart is similar. It went as low as $100.52, but managed to hold triple digits (split-adjusted). That was the search giant’s lowest price since March 2021. It’s also near the stock’s May low:


This price action described above clearly isn’t bullish in itself. But if the market rebounds after Wednesday’s Fed meeting, traders may view the recent lows as reference points, with potentially more space to the upside than the downside.

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