3 Large-Cap Stocks to Buy Right Now

large-cap stocks - 3 Large-Cap Stocks to Buy Right Now

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It stands to reason that what goes up, must come down. Well, today at least. But what about tomorrow? In a market made up of risk assets of all kinds, industry-leading large-cap stocks stand out as investments that are sure to make it out to the other side. And today, as we’ll explore below, three look ready enough on their price charts to begin that type of more bullish campaign.

To be certain, these are interesting times we live in. One day it feels like the second coming of the Roaring 20s. The next? Wall Street dishes out Wednesday. Led by crippling plunges in leading cryptocurrencies Ethereum (CCC:ETH-USD) and Bitcoin (CCC:BTC-USD), even the Dow Jones Industrials and its cadre of blue-chips have found themselves unable to simply shake off other investors headaches.

From Apple (NASDAQ:AAPL) to Visa (NYSE:V) and all those large-cap stocks in-between, all but three of the Dow’s constituents are underwater intraday. For its part, the bellwether index is off about 1.00% after hitting a one-month low. But is the bull market really over? It depends on where one looks.

  • Roku (NASDAQ:ROKU)
  • Salesforce.com (NYSE:CRM)
  • Tesla (NASDAQ:TSLA)

Bottom line, Wednesday’s jarring shot over Wall Street’s bow hangs on Chinese regulators and the country’s less-favorable cryptocurrency policies. But mark my words, those concerns will come to pass or at least swept under the carpet. And as is most always the case, large-cap stocks with real prospects will be better positioned to move on to bigger and better things, while more excessive sideshows can roll over and be rightfully laid to rest.

Large-Cap Stocks to Buy: Roku (ROKU)

Roku (ROKU) lower-low double bottom variation off 50% support confirmed
Source: Charts by TradingView

The first of our large-cap stocks to buy are shares of Roku. The streaming entertainment device giant has been under pressure since hitting an all-time-high in mid-February. The technical smackdown is far from unique as Wall Street switched its playbook favoring value over growth around the same time.

Today and following its significant correction, conditions look ripe for buying into ROKU stock. Technically, this large-cap stock has confirmed a lower-low double-bottom variation. And shares are trading near the high of the prior period’s inside hammer candlestick, which acted as the buy signal.

With the pattern formation supported by ROKU’s 50% retracement level and shares close to the initial purchase decision, I’m willing to look past an oversold, but still bearishly-aligned stochastics. For more secure exposure to this large-cap stock though, the July $340/$375 collar combination is a smart approach both off and on the price chart.

Salesforce.com (CRM)

Salesforce.com (CRM) higher-low confirmation within multi-month, well-supported bearish channel points towards bullish cycle ahead
Source: Charts by TradingView

Salesforce.com is the next of our large-cap stocks to buy. One of the Dow’s recent additions from last summer, the reshuffling hasn’t yet worked out for the Dow. In fact, the switch has proven an unnecessary dead weight for the index. But conditions on the CRM stock chart look ripe for a change.

This week and despite the Dow coming to terms with a fear of heights, the massive enterprise cloud play has formed a confirmed bullish hammer bottom. The price action is part of a higher-low pattern that’s formed off layers of key support. Moreover, it sets up a conclusion for this large-cap stock’s bearish corrective channel that’s formed since last August when shares were put into the Dow.

With mostly well-aligned behavior from CRM’s stochastics indicator, I’m expecting shares of this large-cap stock to rally strongly over the next couple months into the right side of its corrective base. To play this large-cap stock more strategically and given an earnings catalyst later this month, the June $230/$250 collar is a good-looking combination to play for the best of times, while preparing for the worst.

Large-Cap Stocks to Buy: Tesla (TSLA)

Tesla (TSLA) double bottom forming inside deeply layered band of price support
Source: Charts by TradingView

The last of our large-cap stocks to buy is Tesla. It’s the market’s uncontested 800-pound EV gorilla. And it’s increased its domination amid a pandemic and competition from old school auto manufacturers General Motors (NYSE:GM) and Ford (NYSE:F), as well as looming upstarts Churchill Capital (NYSE:CCIV) or Fisker (NYSE:FSR) and others has been amazing.

Today, shares also look worthy of a purchase. Well, mostly. As with our other large-cap stock candidates, an oversold stochastics isn’t yet fully cooperating. TSLA also doesn’t offer weekly pattern confirmation. Still and appreciatively, a deep corrective double-bottom wedged in between multiple layers of Fibonacci and price support is the type of value situation which typically pays off big-time for a stock of TSLA’s caliber.

As with the other large-cap stocks to buy, big-time payoffs don’t require investors to take unnecessary risk if optional features are selected for a long TSLA stock position ahead of time. In this instance, I’d go with a September $620/$750 collar to beat back the possible dog days of summer, while taking advantage of potential cooler fall conditions.

On the date of publication, Chris Tyler owns (either directly or indirectly) Grayscale Bitcoin and Ethereum Trusts (GBTC and ETHE). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


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