Mega Cap Correction Chart Patterns

These patterns keep repeating themselves over and over

Did you know that the largest publicly traded stocks have corrected an average of 24% over the past year?

I missed all of these dips because I mainly follow the indexes, not each mega cap pick individually.

I recently looked at the charts of all of these companies, trying to understand how their corrections started. When I took the time to look over the charts, some of the patterns that I saw surprised me.

When I say mega cap stocks, I’m talking about the ten largest publicly traded companies, which are NVDA, AAPL, GOOGL, MSFT, AMZN, TSM, AVGO, META, TSLA, and LLY (I’m not including SPCX & SKHY as those companies only recently IPO’d).

Most dips occurred right after price breakouts

These price corrections actually occurred at periods in the chart with some really bullish price action.

For example, META stock had one of the worst corrections in the bunch, dropping 33% from the close on August 12th to the close on March 27th.

Take a look at META’s candlestick chart, and you’ll see that the stock began its correction just after the stock broke out from previous resistance:

META’s last breakout before its 33% correction, from my guide Spot the Correction with Candles