Roundhill Magnificent Seven ETF (MAGS) offers equal‑weight exposure to seven US technology companies: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. It launched in April 2023.
On the weekly Elliott Wave chart, the rally from the all‑time low ended as wave (I) at $58.69 in December 2024. The advance unfolded as a five‑wave impulse.
Weekly Elliott Wave Roadmap
A wave (II) drop followed and reached $39 in April 2025. From that low, price rallied in wave (III) as a nested sequence and completed wave I at $69.14.
The analysis says MAGS is now in a pullback that should correct the move from the April 2025 low. It describes the correction as a 3‑, 7‑, or 11‑swing pattern, followed by another push higher.
On the daily chart, the rally from April 2025 also ended at $69.14 as wave I. Wave II is labelled as a double‑three correction, with wave ((W)) ending at $60.13. Wave ((X)) is now developing after the October 29, 2025 high.
The $39 level is the key pivot. The pullback is expected to look for support through a 7‑swing sequence.
Strategy And Risk Considerations
This review follows the Elliott Wave roadmap projected late last year. That roadmap suggested MAGS was due for a correction after topping at $69.14. It called for a pullback to correct the strong rally from the April 2025 low at $39. The expected setup was a complex, multi‑swing correction before the main uptrend resumed.
Since then, the correction has developed as expected. MAGS fell through Q4 2025 and found a temporary base near $56 in January 2026. The decline intensified after the Federal Reserve struck a more hawkish tone in December 2025, signaling fewer rate cuts for 2026 than markets had expected—similar to the volatility seen during 2023. As of February 23, 2026, the ETF is trading near $59 after a weak rebound.
Over the next few weeks, this supports a defensive (or mildly bearish) stance. The corrective wave ((X)) bounce may be finished, which could set up another leg lower. Traders could consider April 2026 puts around the $57 strike, aiming for a retest of the January lows. This trade benefits if MAGS falls before the longer‑term uptrend resumes.
Volatility has also increased. The VIX is near 19, up from an average near 14 in the second half of 2025. Higher volatility makes options more expensive, but it also reflects uncertainty—often seen late in a correction. If you expect a sharp move but are unsure of direction, an at‑the‑money long straddle could benefit from a breakout out of the current range.
Even so, the long‑term view stays bullish as long as the April 2025 pivot at $39 holds. Traders who share that view could consider selling cash‑secured puts well below the market, such as the May 2026 $52.50 puts. This collects premium now, with the goal of buying shares at a large discount if the correction deepens.
It may also make sense to hedge long‑term big‑tech exposure given the current setup. Recent reports point to increased regulatory scrutiny on two of the ETF’s largest holdings, adding headline risk. Buying protective puts that expire in late spring can offer relatively low‑cost protection against a sudden market drop driven by news.
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