Here are the AI stock charts that look good — and not so good, according to JPMorgan

JPMorgan's Jason Hunter provides technical analysis on key AI and tech stocks, identifying crucial price levels amidst a seasonally weak period for U.S. equities. While Alphabet maintains a strong bull trend, several leaders show signs of exhaustion or weakness, including Nvidia with potential downside to $147-153, Oracle exhibiting significant short-term chart damage, and Meta Platforms indicating trend deceleration. Microsoft is attempting to rebase, and Amazon's pattern remains uncertain, prompting investor caution. This analysis offers critical technical insights for monitoring market leadership and potential sector shifts.

Analysis

Based on JPMorgan's technical strategy report, key artificial intelligence and technology bellwethers are exhibiting divergent performance trends amidst a seasonally weak period for equities. While the AI-driven bull market's leadership is being tested, Alphabet (GOOGL) stands out with the "strongest bull trend dynamics," fortified by a favorable antitrust ruling and maintaining its upward trajectory above the critical $204-212 support zone. In stark contrast, several peers show signs of exhaustion or technical degradation. Nvidia (NVDA) is struggling below key resistance at $171.50-174.15 and has broken down from a short-term top pattern, signaling a potential pullback toward the $147-153 support level. Oracle (ORCL) displays the most significant "short-term chart damage" after breaching multiple support levels, suggesting a further retracement of its recent rally. Similarly, Meta Platforms (META) is exhibiting "trend deceleration," and Amazon's (AMZN) price action is ambiguous, potentially forming a longer-term double top. Microsoft (MSFT) is attempting to rebase after a recent setback, with its medium-term trend still intact but requiring a move above $518-520 to regain bullish momentum. This bottom-up analysis reveals a fractured leadership within the tech sector, indicating that broad, theme-based investing may give way to more stock-specific considerations.

Key Decisions for Investors

• Given Alphabet's strong technical posture and positive legal catalyst, investors could manage long positions with a trailing stop set below the $204-212 support zone to protect gains while allowing for further upside.
• For Nvidia and Oracle, which show clear signs of technical breakdown, consider waiting for a test of their identified medium-term support zones ($147-153 for NVDA) as this could present a tactical buying opportunity or, if breached, a signal for further downside.
• Exercise caution with stocks like Meta, Microsoft, and Amazon, where trends are decelerating or uncertain; monitor their key support levels closely, as a break below these thresholds could trigger a more significant reversal, especially during a seasonally weak market.
• Re-evaluate overall tech sector exposure by scrutinizing holdings with deteriorating technicals and potentially favoring names that exhibit sustained momentum and clear support, reflecting the growing divergence among market leaders.