$MAGS Monthly Chart Signals Caution: What’s Next for the Magnifi

6 Feb

Macro Outlook Based on the Monthly Chart ⚠️⚠️⚠️⚠️

The Roundhill Magnificent Seven ETF MAGS has had an incredible run, but the monthly chart is sending some cautionary signals. December closed with a massive sell-off wick, followed by a weak January close. This kind of price action suggests potential exhaustion in the near term.

The last time we saw a similar setup was in July, when a sharp sell-off wick led to a 23% drop before the market resumed its upward trend. Does this mean MAGS has to plummet again? Not necessarily, but with market uncertainty around the tariff war and the monthly chart showing signs of stagnation, a steeper retrace could be on the horizon before any further upside. It’s possible we’re seeing a temporary top for now.

Short-Term Outlook:
As long as price holds above the yearly open, I expect a retest of the $57 resistance level. However, for the macro trend to turn bullish again, we’d need to see strong momentum and a solid close above $57 by flipping this level from resistance to support. Until then, the current price action feels more like a dead cat bounce than a sustainable recovery. Expecting volatility in the near term.

11 Mac

Dagangan aktif

MACRO OUTLOOK'S PLAYING OUT ✅ 🩸

Price has now dropped -20% since our last update, and the macro outlook we laid out is unfolding exactly as anticipated. The monthly chart showed clear signs of exhaustion.

So, what’s next? In theory, current market levels should be good for a bounce. However, keep in mind that this retrace could easily extend to the low $40's without any issue.

Any short term pump should be treated as an underside retest. Until $49 level is reclaimed and confirmed as support, the broader downtrend remains intact, and bounces should be approached with caution.