3 Top Nasdaq Stocks to Buy

Nasdaq stocks - 3 Top Nasdaq Stocks to Buy

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They’re among the biggest and best at what they do. And today, three top Nasdaq stocks are ready for investors’ portfolios. Let’s take a look at those price charts primed for buying and made more actionable with well-aligned and hedged strategies that smartly avoid further potential hazards in 2021.

Risk-on. Risk-off. It’s been a rough go for more than a few stocks this year. Churchill Capital (NYSE:CCIV). Opendoor Technologies (NASDAQ:OPEN). Riot Blockchain (NASDAQ:RIOT). Tilray (NASDAQ:TLRY). Sure, some might say those were special situations in overheated SPACs, cryptos and cannabis that deservedly had it coming to them. I won’t pass judgement there.

But the less enjoyable treatment of risk also happens to the best and biggest of them too. I’m referring to Nasdaq stocks that dominate their industries and whose valuations are sure to hinder and lift the spirits of index investors.

Today Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) are among those Nasdaq stocks testifying to the reality. Without asking why, and I’m sure Wall Street has plenty of reasons to blame, both Nasdaq stocks and irrefutable market leaders continue to demonstrate relative and absolute price weakness as we enter the notorious, but not always accurate summer doldrums.

As the best of the best, Wall Street is sure to change its tune on AAPL stock and AMZN. But not today. The good news right now is some of their equally formidable Nasdaq stock peers are setting up for actionable buys right now.

Nasdaq Stocks to Buy: Microsoft (MSFT)

Microsoft (MSFT) pullback entry within weekly up channel
Source: Charts by TradingView

The first of our Nasdaq stocks to buy is Microsoft. Sometimes referred to as Mr. Softy and the market’s second largest capitalization company, MSFT looks ready to flex some technical muscle and close the valuation gap with AAPL.

As the weekly price chart reveals, this top Nasdaq stock recently confirmed a double candlestick pivot low. The bullish pattern, along with an oversold stochastics that’s starting to flatten, suggests MSFT stock’s year-plus channel formed off last March’s Covid bear market bottom, is far from finished business.

It’s our observation a rally to improve the channel could take Microsoft shares toward $275 to possibly as high as $300 by the end of 2021. To gain exposure and ensure against larger losses from any bearish developments, I’d suggest the July $250/$260 collar strategy on this Nasdaq stock to buy.

Alphabet (GOOG, GOOGL)

Alphabet (GOOGL) small cup formed around channel resistance hints at momentum breakout
Source: Charts by TradingView

Alphabet is the next of our Nasdaq stocks to trade. The diversified tech giant has a remarkably similar up-channel to Microsoft shares. Today though, we’re looking at an improved, momentum-driven situation.

Technically, GOOGL stock is positioned in a small cup-shaped base that’s formed around the stock’s upper trend line. It’s acted as resistance, but not overwhelmingly so. And given the bullish pattern at hand, a breakout would be a sure sign of increased momentum. Further, with stochastics just forming a bullish crossover in neutral territory, the odds for a meaningful rally in this Nasdaq stock appear greatly improved.

For making a better play on GOOGL’s momentum and to avoid a top where you’re left holding the bag, I’d recommend the August $2,500/$2,600 bull call spread for an attractive risk-to-reward profile.

Nasdaq Stocks to Buy: Tesla (TSLA)

Tesla (TSLA) well-supported corrective double bottom to buy
Source: Charts by TradingView

The last of our Nasdaq stocks to buy is Tesla. I don’t have to tell you TSLA is the EV market’s uncontested 800-pound gorilla. Nor is it breaking news that Tesla has dominated against all odds during the global pandemic. What I will tell readers is that today, the road ahead for TSLA stock looks as sturdy as they come.

Technically, shares of TSLA are trading slightly above a confirmed corrective double bottom. With the durable pattern finding support off multi-layered support and an oversold stochastics signaling a bullish crossover, shares are setting up nicely to regain a pole position role for Nasdaq stocks.

Go with a September $620/$750 collar and get ready to charge up your portfolio with profits and leave Tesla’s bear market in the rearview mirror!

On the date of publication, Chris Tyler did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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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