3 Big Tech Stocks to Buy With Impunity

The tech selloff that took place over the past month took its toll on a large number of Big Tech stocks. And while some definitely sported more attractive valuations after taking a hit, that doesn’t mean that all are worth picking up at a discount. Nor does that mean you can jump into the rallies underway and come out whole.

3 Big Tech Stocks to Buy With Impunity
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A “summer swoon” could still be in the cards for some names, as the bull market has been powered by an unsustainable trend higher in tech stocks over the past few years (leading to comparisons with the dot-com bust).

By sorting through those stocks hit during the rout in tech with my technical analysis, however, I’m seeing three good opportunities in Apple, Inc. (NASDAQ:AAPL), Netflix, Inc.(NASDAQ:NFLX) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL).

Each has pulled back quite a bit in the past six weeks and is signaling that it could be time to buy selectively.

Tech Stocks to Buy: Apple (AAPL)

Apple climbed to an all-time high of $156.65 on May 15 before falling 9% to a low in June. As you can see in the chart above, AAPL stock built a bullish base just under $143 and went on to put together a six-day winning streak to close Friday at a fresh one-month high.

Over the past five trading days, Apple shares have managed to gain 4.5%, as it appears the selling is now behind AAPL.

With the new iPhone release date quickly approaching, investors are focusing on the bigger picture, which may be enough to drive AAPL stock back to record highs soon.

Tech Stocks to Buy: Netflix (NFLX)

Netflix had things a bit worse, pulling back nearly 14% from its June 8 high above $166 to a near-term low of $144.25.

The shares found strong price support between $140 and $145 and have since rebounded more than 10% to reclaim their 50-day moving average (the blue line), and another 18% to its current perch of $186.24.

There’s no question Netflix is being pressured by competition, but I don’t believe there is a single company out there with the ability to do any real damage in the near future. Even after its earnings run, there’s still a lot of upside potential in Netflix shares over the long term.

Tech Stocks to Buy: Alphabet (GOOGL)

Similar to Apple, Alphabet also experienced a 9% decline as a result of the tech selloff. However, buyers came out of the woodwork at the important support level at $920, which is the top of the gap that GOOGL stock created when it rallied in late April.

GOOGL is on the verge of recapturing its 50-day moving average (the blue line) and it looks like it has its sights set back on the $1,000 milestone. I expect it to hit again soon, so I view this stock as a buy.

There are two ways to view the recent rebound in the mega-cap tech stocks. First, it could be nothing more than a bounce in a new downtrend. Or it could be a recovery after a normal and healthy pullback in an overall strong bull market. I’m definitely in the second camp.

Remember, not even the strongest of stocks can go up every day. The key is being smart about which weakness you use to your advantage.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the “next” generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on. Click here for more information on the “NexGen” Experience.

Article printed from InvestorPlace Media, https://investorplace.com/moneywire/2017/07/3-big-tech-stocks-to-buy-with-impunity/.

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