Are Magnificent Seven Stocks Due For Santa Rally Or Lump of Coal?

IBD Leaderboard showcases Magnificent Seven stocks Nvidia (NVDA), Meta Platforms (META), Microsoft (MSFT) and Amazon.com (AMZN), as well as Shopify (SHOP) and new S&P 500 member Uber Technologies (UBER).

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But as NVDA stock, META, AMZN and MSFT run into some turbulence, Wall Street wonders what’s ahead for the Magnificent Seven stocks. Will the Santa Claus rally pick up steam or will these tech titans find lumps of coal in their stockings?

Uber stock got an early Christmas present as it continues to soar on news it will join the S&P 500 this month.

The Nasdaq and S&P 500 both faced a few days of selling pressure last week, but remain near their 52-week highs.

Meanwhile, Nvidia and Meta are now testing support at their 50-day moving averages as Amazon manages to stay above its 21-day line. On Monday, MSFT stock opened the new week by slipping below that benchmark and its 366.78 buy point.

Keep a close eye on how these AI stocks and others handle support and resistance at their moving averages and recent buy zones. That will continue to reveal if any pauses or pullbacks represent a healthy rest ahead of a bullish holiday season, or signs of trouble heading into the new year.

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Nvidia Stock Among Those Still Near Buy Zones

As December gets underway, Nvidia, Meta, Microsoft and Amazon stock are all coming under pressure. Yet, each of these Magnificent Seven stocks gracing the IBD Leaderboard list remain near a buy zone.

Other Leaderboard names in or near buy range include Carpenter Technology (CRS), Eli Lilly (LLY) and D.R. Horton (DHI).

DHI stock has crafted a cup with handle showing a 130.79 buy point, while CRS stock now trades in the buy zone from the same chart pattern. Carpenter’s buy zone ranges from 71.30 to 74.87. LLY stock is targeting a 629.97 buy point as it bounces back above its 50-day line.

Three stocks on the IBD Leaderboard watchlist are also setting up. ELF Beauty (ELF) and Booking Holdings (BKNG) and IPO Leader ARM Holdings (ARM) all fit that bill.

So as Santa readies his sleigh and Wall Street looks ahead to 2024, we’ll see if Nvidia, Amazon, Meta, Microsoft and other Leaderboard stocks can shake off any current pressure and take flight.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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