Facebook
(FB) - Get Report faces an earnings challenge. Its report is scheduled to be released after the closing bell on Wednesday; analysts expect the company to earn 50 cents a share. But the stock is under the cloud of a negative weekly chart. 

This technical analysis should help you decide what to do about the big tech stocks.

Facebook stock is attempting to stabilize between its 200-day simple moving average of $92.84 and its 50-day simple moving average of $103.30. After setting its 2016 low of $89.37 on Jan. 20, the stock closed that day above its 200-day SMA. Facebook is in correction territory, 12.3% below its all-time high of $110.65, set on Nov. 5. After gaining 34% in 2015, it's down 7.3% in 2016.

Facebook is a holding in the Action Alerts PLUS Charitable Trust Portfolio, which is managed by TheStreet's Jim Cramer.

"Facebook remains the top company in social media, with a powerful portfolio of assets which includes Instagram, WhatsApp, Messenger and its newly released virtual-reality franchise. Overall, the company has done a great job at driving long-term revenue growth," wrote Cramer and Action Alerts PLUS Research Director Jack Mohr. They also said, "Despite the stock's great run in 2015, we expect shares to move higher as the company continues its torrid pace of growth. We reiterate our $120 target."

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Netflix (NFLX) - Get Report was the first of the four FANG stocks -- Jim Cramer's acronym for the high-flying tech stocks Facebook, Amazon (AMZN) - Get Report , Netflix and Alphabet's (GOOGL) - Get Report Google -- to report earnings for the fourth quarter of 2015. Netflix beat analysts' earnings-per-share estimates on Jan. 19, but after trading higher in after-hours trading that day, the stock began to tumble as the sun rose on Jan. 20. This indicates that beating estimates is not the only metric that matters. Solid forward guidance is important as well, given slow economic growth globally, and the spreading bear market for stocks.

Netflix was the biggest FANG winner of 2015, with a gain of 134%. But it's the biggest drag so far in 2016, down 13.3% year to date. It is in bear market territory, 25.6% below its all-time high of $133.27, set on Dec. 7. The stock closed Monday below its 200-day simple moving average of $103.60.

Amazon is scheduled to report earnings after the closing bell on Jan. 28. Analysts expect the stock to earn $1.61 a share. The stock is trading between its 200-day simple moving average of $528.97 and its 50-day simple moving average of $647.32.

Amazon was a huge winner in 2015, with a gain of 118%, but it's down 11.7% so far in 2016. Amazon shares are in correction territory, 14.3% below the all-time high of $696.44, set on Dec. 29.

Alphabet is scheduled to report earnings after the closing bell on Feb. 1. Analysts expect this FANG stock to earn $6.65 a share. The stock is trading between its 200-day simple moving average of $654.74 and its 50-day simple moving average of $758.08.

Alphabet gained 47% in 2015 and is down 5.7% so far in 2016. It is 8.1% below its all-time high of $798.69 set on Dec. 29.

Cramer and Mohr commented on Google, which is a holding in their Action Alerts PLUS charitable trust: "While Google's dominant search business remains core to its foundation, Alphabet has assembled an impressive portfolio spanning beyond Google search." They added, "Behind a strong secular growth trend marked by advertising dollars shifting online, specifically to mobile, Google's 60% share of the global search market -- six times greater than its next competitor -- creates a virtuous cycle of excellence. Our target remains $850."

During times of extreme downside volatility such as this month, it's harder to make investment and trading decisions. This makes the daily and weekly charts, and their key levels, extremely important for those wanting to capture the volatility, not fear it. It takes discipline to buy on weakness and to sell on strength, when the overall market has been in a sell-strength mode since the end of June.

The weekly charts shown below are negative. The red line through the weekly price bars is the key weekly moving average (a 5-week modified moving average). The green line is the 200-week simple moving average, considered the "reversion to the mean". The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicate overbought and readings below 20.00 indicate oversold. A negative weekly chart shows the stock below its key weekly moving average with weekly momentum declining below 80.00 in a trend towards 20.00.

Here's the weekly chart for Amazon.com.


Courtesy of MetaStock Xenith

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The weekly chart for Amazon.com is negative, with the stock below its key weekly moving average of $616.31. Its weekly momentum reading is projected to decline to 43.81 this week, down from 54.24 on Jan. 22.

Investors looking to buy Amazon should enter a good-till-canceled limit order to buy the stock if it declines to $540.85, which is a key level on technical charts for all of 2016. Investors looking to reduce holdings should enter a GTC limit order to sell this stock if it rises to $621.72, which is a key level on technical charts until the end of June.

Here's the weekly chart for Facebook.


Courtesy of MetaStock Xenith

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The weekly chart for Facebook remains negative, with the stock below its key weekly moving average of $99.64. Its weekly momentum reading is projected to decline to 38.36 this week, down from 42.30 on Jan. 22.

Investors looking to buy Facebook should enter a good-till-canceled limit order to buy the stock if it declines to $81.91, which is a key level on technical charts for all of 2016. Investors looking to reduce holdings should enter a GTC limit order to sell this stock if it rises to $110.97 and $112.42, which are key levels on technical charts until the end of January and the end of March, respectively.

Here's the weekly chart for Alphabet.


Courtesy of MetaStock Xenith

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Exclusive Look Inside:
You see Jim Cramer on TV. Now, see where he invests his money and why Alphabet is a core holding of his multi-million dollar portfolio.

Want to be alerted before Jim Cramer buys or sells GOOGL?Learn more now.

The weekly chart for Alphabet is negative, with the stock below its key weekly moving average of $741.28. Its weekly momentum reading is projected to decline to 49.77 this week, down from 57.56 on Jan. 22.

Investors looking to buy Alphabet should enter a good-till-canceled limit order to buy the stock if it declines to $672.58, which is a key level on technical charts until the end of March. Investors looking to reduce holdings should enter a GTC limit order to sell this stock if it rises to $756.16 and $803.52, which are key levels on technical charts until the end of June and the end of this month, respectively.

Here's the weekly chart for Netflix.


Courtesy of MetaStock Xenith

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The weekly chart for Netflix stays negative, with the stock below its key weekly moving average of $108.43. Its weekly momentum reading is projected to decline to 31.02, down from 41.59 on Jan. 22.

Investors looking to buy Netflix should enter a good-till-canceled limit order to buy the stock if it declines to $82.98, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should enter a GTC limit order to sell this stock if it rises to $105.60 and $110.13, which are key levels on technical charts until the end of March and the end of June, respectively.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.