3 Tech Stocks to Buy for Profit Seekers

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stocks to buy - 3 Tech Stocks to Buy for Profit Seekers

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Friday’s rally re-asserted the bulls’ dominance in the financial playground, particularly in the tech space. The Nasdaq Composite continues to lead its index brethren and now sits a mere pebble toss from yet another all-time high.

3 Tech Stocks to Buy for Profit Seekers

The inability of sellers to take this tech-laden index below even the 20-day moving average during last week’s pair of down days is telling. Indeed, short-lived, shallow selloffs suggest bears have been relegated to guerilla warfare — ambushes and hit-and-run attacks as opposed to full-scale frontal assaults.

While existing stock owners may find these tactics irritating, the reality is they provide lower-risk entries for would-be buyers. Pullbacks and pauses are perfect for creating higher-probability setups, the likes of which can be found in today’s selections of stocks to buy.

In light of tech’s continued leadership, let’s focus on three of the best setups in the space.

3 Tech Stocks to Buy: Apple (AAPL)

3 Tech Stocks to Buy: Apple (AAPL)

Source: OptionsAnalytix

Apple Inc. (NASDAQ:AAPL) tops our list of stocks to buy, and appropriately so. Although AAPL stock remains well off its highs, the coveted title of largest company in the world by market capitalization remains in its hands.

Apple’s latest earnings announcement, coupled with the rousing reception for its latest iPhone iteration, has helped the tech titan return from bear country.

AAPL stock has now climbed 26% from its 52-week low. With the stock now north of all major moving averages, the future looks bright. Volume patterns have also been backing the bulls of late. High-volume up days are outpacing high-volume down days by a decent margin.

The past two weeks of chop have created a nice bull flag for Apple stock. Watch for a break of the descending channel to signal its next up-leg has commenced.

Buy the AAPL Dec $110 call options.

3 Tech Stocks to Buy: Alphabet (GOOGL, GOOG)

3 Tech Stocks to Buy: Alphabet (GOOGL, GOOG)Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG) stock has been coiling nicely since its late-July earnings announcement. The sideways churn has allowed the king of search to digest the earnings gap while working off overbought conditions. The 50-day moving average for GOOGL stock has now caught up, which suggests it’s high time for buyers to step up and take the stock higher.

The past week of selling has created a pullback for Google. It now rests at its rising 20-day moving average, which could be a catalyst for buyers to swoop in to drive the stock higher. If you think the uptrend for GOOG stock continues, this is as good an entry as any. Look for a break above Friday’s high ($808.09) to trigger you in.

Since Google stock options are on the pricey side, consider a call spread. Buy the Dec $800 call while selling the Dec $820 call for a net debit around $10.

3 Tech Stocks to Buy: Netflix (NFLX)

3 Tech Stocks to Buy: Netflix (NFLX)

Source: OptionsAnalytix

Netflix, Inc. (NASDAQ:NFLX) stock rounds out today’s list of stocks to buy with a breakout setup in the making. Truth be told, NFLX has been a crappy stock to trade for the entire year. Blame it on the whippy trading range it has been mired in for months. But, if recent developments are any indication, NFLX stock may finally be ready to depart its range-bound prison in search of higher prices.

With Friday’s high volume pop, NFLX was able to close above its 200-day moving average for the first time since April. In early morning trading Monday, the stock is continuing its breakout bid with a breach of the $100 level.

Buy the Nov $100 call while selling the Nov $105 call for $2.30.

At the time of this writing, Tyler Craig had bullish positions in NFLX. 

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Article printed from InvestorPlace Media, https://investorplace.com/2016/10/tech-stocks-higher-aapl-googl-nflx/.

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