By Terence Gabriel

June 30 (Reuters) - The Magnificent Seven stocks may be nearing an important turning point after a sharp June selloff. The big question now is whether buyers step in soon, or whether the decline has further to run. Click here for a more detailed chart. The group has fallen much more than the broader market this month. While the S&P 500 was down about 3% through Friday’s close, the Roundhill Magnificent Seven ETF — MAGS — dropped nearly 13%, putting it on track for its worst month since it launched in mid-2023. The chart is starting to look weaker. MAGS closed last week at $61.60, according to data supplied by LSEG, falling below its 34-week moving average for the first time since mid-April. A moving average is simply a line that shows the average price over a period of time. Traders use it to help judge whether a market is trending higher or lower.

In the past, when MAGS has fallen below this line — as it did in early March 2025 and mid-February 2026 — more selling followed. That makes the latest move a possible warning sign.

But there are reasons the decline could slow soon. Several possible “support” levels sit just below Friday’s close. Support is an area where investors may decide the price looks attractive and start buying. Those levels are near $60, $58.70 and $58.50.

Indeed, on Monday, MAGS rallied 3.1%, to close at $63.52.

If MAGS can climb back above its 34-week moving average, now around $64.75, that would suggest the selling pressure is easing. It could then try to move back toward its record high of $71.16.

But if those support levels break, the ETF could fall toward $55, or even $48.40.

What the chart shows:

MAGS has dropped below an important average-price line
Buyers may step in around $60 to $58.50
A move back above $64.75 would improve the outlook

(Daily markets commentary from Reuters analysts on the signals financial charts are sending - and what they might mean.)

(Terence Gabriel is a Reuters market analyst. The views expressed are his own. Editing by Burton Frierson and Sonali Paul)