Tech stocks cinched a critical victory last week. Friday delivered a rousing rally that carried the Nasdaq back above its 50-day moving average. Barring a mean-spirited rug pull, the future is looking bright for this sector.
My optimism is further bolstered by a deep dive into the individual components. Remember, it’s not just a stock market, it’s a market of stocks. And while the Nasdaq is flashing a green light, it’s the plethora of quality chart patterns in its constituents that has my inner bull snorting.
Today’s trio spotlights some of the best. Indeed, these selections scored a positive reversal of fortune last week and appear primed for more upside.
Behold, three big-cap tech stocks flashing tasty setups.
3 Big-Cap Tech Stocks to Buy: Apple (AAPL)
We begin, appropriately, with the big kahuna. Apple Inc. (NASDAQ:AAPL) shares scored a double dose of positive news last week which rapidly carried it to record heights. First, it was an earnings release which dazzled the Street. Then it was news that Warren Buffet was upping his stake by purchasing 75 million additional shares.
With AAPL stock now perched at record highs, it has officially cleared any and all resistance levels that were keeping shares contained. It’s also now above all its major moving averages. Just last week it was submerged beneath the lot of them, so this was a powerful turnabout.
While AAPL is overbought on the daily chart, the weekly time frame looks golden. Consider any and all dips in the stock a buy.
3 Big-Cap Tech Stocks to Buy: Facebook (FB)
After a scandalous sojourn in bear country, Facebook, Inc. (NASDAQ:FB) has finally returned to bullish territory. The catalyst that cut through the PR mess and muted the haters was earnings.
Its quarterly report and the subsequent buying binge launched FB back to its 200-day moving average. Rather than rapid rejection, prices levitated all last week, despite numerous attempts by short-sellers to stymie the strength.
With FB heading into this week flashing a clean high base setup, the time is ripe for its next advance. The gap area sitting overhead should make it easy for FB to rally from $177 to $185 quickly.
Consider using $170 as your bail point. A break back below there would invalidate the breakout.
3 Big-Cap Tech Stocks to Buy: Netflix (NFLX)
Unlike its predecessors, Netflix, Inc. (NASDAQ:NFLX) shares never really suffered a detour down south. Instead, the media kingpin has remained above the 50-day moving average. The pullback that followed last month’s earnings gap to record heights was a beautiful buying opportunity.
It has been followed up by a nice little base that was broken by Friday’s monster bullish engulfing candle. With resistance now felled I see little reason why NFLX stock won’t go back up and re-test its recent highs.
$290 is the line in the sand for buyers. If Netflix falls below there, abandon ship. Otherwise, the future looks bright.
As of this writing, Tyler Craig didn’t hold positions in any of the aforementioned securities. Want more education on how to trade? Check out his trading blog, Tales of a Technician.
