This article is written exclusively for investing.com
Following Thursday's stronger close, US futures have risen, pointing to a higher opening on Wall Street. Markets have not been too moved this week, and consolidation after a major two-week rally is never a bad thing from an optimistic perspective.
So while it may seem like equity investors are more concerned about the new lockdown measures to halt the spread of the coronavirus than they are hopeful about the prospects for a vaccine, the underlying bullish remains trend intact. As such, I have identified three tech stocks that look quite bullish. So, without further ado…
Snap
After a sharp rise in BIG volumes on earnings a month ago, the shares in Snap (NYSE 🙂 managed to stay comfortably above the canyon and now looks ready to break out further.
As the stock has managed to hold near its all-time high for about a month now, momentum indicators such as the Relative Strength Index (RSI) have seen their & # 39; overbought & # 39; conditions worked through time rather than price action (i.e. a sale). This is another bullish sign as it suggests the buyers have retained control of the price action and the stock is no longer overbought, meaning momentum-chasing bullish speculators may now consider stepping back in to reverse the potential upward movement. especially given the breakout above the triangle pattern on Thursday
In addition, the stock has not closed below the 21-day exponential moving average since late August. The key short term support is at USD 41, which must be held on a closing basis to maintain the bullish bias. Some of the bullish targets include the area just above its all-time high of $ 45.60, above which a cluster of trapped buy stop orders from sellers would certainly rest. Above that level, the 127.2 and 161.8 percent Fibonacci expansion levels come in at $ 47.84 and $ 50.70, respectively.
eBay
After breaking a new record in July, eBay (NASDAQ 🙂 has been struggling. But now it looks bullish again from a technical standpoint. The stock held its position above the still-rising 200-day moving average earlier this month. Additionally, the key support at USD 47.00, which was also its 2018 high, was also defended by the bulls.
With the stock rising above the bearish short-term trend line this week, the path of least resistance is thus objectively up again. More confirmation could come if eBay now moves above its most recent high of $ 51.17 to hit its first high since mid-October.
It's worth pointing out that the stock has also created a nice weekly hammer. candle in the previous week, and it is now trading above it. Some of the targets include the USD 53.25 hole followed by previous resistance around the USD 60.00 area, with an all-time high just north of the USD 61.00 level.
Meanwhile, the stock managed to hold on to the relatively shallow 38.2% Fibonacci retracement against the move up from the March low is a further indication that buyers are still in overall control and that from here on out, traders have a Expect stronger continuation than would have been the case in the case of a deeper retracement (e.g. to the 61.8% level or above).
Alibaba
Of the three stocks, Alibaba (NYSE 🙂 appears to be the weakest link, but it has also formed a potentially bullish signal after the stock traverses a series of consecutive red sessions on Thursday, when it rose above the previous day's high for the first time in 8 trading sessions.
The rebound turned the weekly candle into a doji / hammer, which would be confirmed unless it closes the red today. So overall, it looks like it's triggering a potential turnaround here.
