Will Mag 7 Stocks Rally After the Fed? What Microsoft, Tesla, Meta Charts Reveal

The Rise of the Magnificent Seven

The "Magnificent Seven" — a group of mega-cap technology stocks — have earned their nickname for good reason. These market leaders have been pivotal in driving this year's equity rally, and there are signs that this trend could intensify as 2025 comes to a close.

The Roundhill Magnificent Seven ETF has shown slight outperformance compared to the Nasdaq Composite, with a 16% gain year-to-date versus the index’s 15%. This small but significant edge highlights the broad participation across the tech sector. However, if seasonal weakness begins to pick up, especially in combination with a more hawkish Federal Reserve than expected, investors may shift back into the Mag 7 as a defensive move.

Here is a closer look at some of the most technically compelling names in the group right now.

Microsoft: A Resilient Player

Microsoft, the third-largest holding in the iShares Expanded Tech-Software Sector ETF, has experienced a decline of 8% from its all-time high after a sharp earnings-related reversal on July 31. Despite this, the stock rebounded by 3% last week, ending its first five-week losing streak since Q1.

Currently, MSFT is holding firm at the round $500 level, an area previously discussed in early August. This level represents a successful retest of the prior bull flag breakout from early July. Bulls will find comfort in the stock’s resilience, especially after the bearish engulfing candle on September 5 failed to gain traction. The doji candle on Monday suggests that selling pressure is easing, potentially leading to the formation of the right side of a cup base. If momentum builds, a move toward $550 by year-end is a logical target.

As of Monday, Microsoft was trading at $512.25.

Tesla: A Strong Performer

Tesla saw a rally on Monday morning following news that CEO Elon Musk had purchased the stock for the first time since early 2020. The stock has already touched the $425 year-end target, earlier than expected, and is looking to build on an impressive 18% gain over the past two weeks.

Looking at the weekly chart, there appears to be a potential path toward the round $500 level by the end of the year. It’s worth noting that Tesla backed off sharply near that mark in the final weeks of 2024, including a notable intraweek reversal to close $67 off its highs during the week ending December 20. This was followed by a doji candle, signaling buyer exhaustion. However, this area now serves as the upper rim of what could be a 10-month cup base formation. If Tesla can break above that resistance zone, a longer-term move toward $800 by the end of 2026 may be in play.

As of Monday, Tesla was trading at $416.92.

Meta Platforms: A Standout Year

Meta Platforms has had a standout year in 2025, nearly doubling the performance of the Nasdaq. While the stock has tracked the index over the last month, declining by 3%, this seems like a prudent pause following a strong move off the April lows.

Technically, round-number theory has played a role. Meta bounced decisively off the $500 level in Q2 and recently traded between the $700 and $800 figures. The stock has formed a double bottom, but investors may want to wait until it crosses above the $766.61 pivot handle before taking long positions. It nearly closed the July 30 gap and is now holding above $750, a level that acted as resistance in both February and June. Should this consolidation resolve higher, a move toward $1,000 by Q1 2026 is well within reach.

As of Monday, Meta Platforms was trading at $758.23.