Wall Street Bulls Believe US Stock Rally Will Continue Despite Bubble Concerns

Although the overall market sentiment reflected in the news headline is positive, technical indicators for NVDA specifically point to weakness. While the RSI at 37 is approaching oversold territory, the price is trading below both the 20-day and 50-day moving averages. The MACD line has crossed above the signal line but remains in negative territory, and momentum has not fully reversed. Therefore, short-term direction remains uncertain, and the price is expected to consolidate at current levels.

AMD shares rose 3.5% in the last 24 hours, closing at $516.40 and trading above the 20-day SMA ($508.09). The RSI at 63.9 supports the upward trend without entering overbought territory, while the MACD remains in positive territory despite being below the signal line. The news headline, reflecting overall market optimism, could boost demand for growth stocks like AMD. However, bubble concerns and a weakening MACD signal suggest the rally may be limited. While the short-term upward movement is expected to continue, profit-taking may occur in the 520-525 resistance zone.

Although ASML's stock experienced a slight decline in the last session, the RSI at 52.6 remains in neutral territory, and the price is trading above both the 20-day and 50-day moving averages. The MACD, while below the signal line, is still in positive territory, indicating that short-term momentum has weakened but has not yet turned into selling pressure. Despite the headline reflecting general market optimism, it is difficult to determine a clear direction for ASML specifically due to bubble concerns and risks facing the semiconductor sector. In the short term, the price is expected to consolidate at current levels or attempt a slight upward move.

MSFT shares have risen over 8% in the last 24 hours, pushing the RSI to 82.7, firmly in overbought territory. This increases the likelihood of a short-term correction or consolidation. While the overall news sentiment remains positive, concerns about a potential bubble and overextended technical indicators raise questions about the sustainability of the rally. Although the MACD and SMAs still support the uptrend, short-term direction remains uncertain.