Tech stocks have enjoyed some strong gains over the past 7 weeks. But while some stocks have made decisive breakouts (‘The Good’), a few are now at resistance (‘The Bad’), others are struggling to hold recent breakouts (‘The potentially Ugly’), and a handful are still more than 40% below their ATHs (‘The truly Ugly’).
What this sector does over the coming weeks will be important.
THE GOOD: Decisive breakouts
AMZN, ADBE, NVDA, and SHOP monthly charts are clearly bullish.
Other names showing nice, strong breakouts include: CRWD, NET, TEAM, and MSFT.
THE BAD: Resistance
AMD, BILL, SE, UPWK, ZS have run into former highs. We could see a pullback here in the coming weeks.
THE UGLY: Potential failed breakouts
A few stocks are struggling to hold recent breakouts. This includes: CVNA, LSPD, MTCH, SNAP, and the Semi ETF SMH. Typically failed breakouts can lead to nasty declines.
The truly ugly tech names are ones that are still over 40% below their ATH’s. This includes: SKLZ, FSLY, AYX, TDOC, Z. Thanks to China’s crackdown, the KWEB ETF is down roughly 40% from its ATH set just 5 months ago.
That’s all I have for today. Again, the next couple weeks will be key.
Important Disclaimer: This blog is for educational purposes only. I am not a financial advisor and nothing I post is investment advice. The securities I discuss are considered highly risky so do your own due diligence.