There’s a discernible trend lately in which the entire stock market has been carried by a handful of tech stocks. This trend was on full display on Monday as a number of technology names kept the stock market from falling hard. Today’s big stock charts feature such tech names.
Whether one sector of the economy can continue to pull the weight of the stock market remains to be seen. But for momentum-focused traders, the trend is your friend. And at the moment, the trend is clearly to the upside for the tech sector.
We can agree with the price action or not, but the charts don’t lie and they’re telling a bullish tale for tech stocks. Now we’ll concentrate on the big stock charts of three names in the technology sector that gave a boost to the equities market as a whole.
Nvidia (NVDA)
For chipset manufacturer Nvidia (NASDAQ:NVDA), graphics cards are the company’s stock in trade. And if you’re trading the stock, hopefully you didn’t take a short position on Monday. The question is: can NVDA stock continue its winning streak, or will the buyers get exhausted soon?
- Those green candlesticks just keep on getting bigger every day, don’t they? There’s no question that the bulls are fully in control of the price action for NVDA stock.
- NVDA stock is easily above the 20-, 50-, and 200-day moving averages. Plus, all three of those moving averages are slanting upwards. Again, this shows that the buyers are completely in charge of the stock price.
- There’s a symmetrical triangle in progress on the NVDA stock charts. The triangle is tilting upwards. The momentum here is unmistakable. Short-sell this stock at your own peril.
Salesforce (CRM)
If you’re looking for a leader in the area of tech-enabled customer relations management, look no further than Salesforce (NYSE:CRM). This firm also excels in cloud computing and software as a service, also known as SaaS.
CRM stockholders got a nice boost on Monday, no doubt about that. Is this enough to warrant a long position in the shares now?
- The body is large and the wicks are small on Monday’s daily candlestick for CRM stock. This indicates that the buyers took the price and ran it up pretty much all day long.
- There’s plenty of space between the CRM stock price and the three major moving averages on the chart. Therefore, no material threats to the bullish thesis can be found here.
- On the other hand, CRM stock will likely test the $200 level at some point in the near future. Watch that number closely to see if the bulls really have what it takes to send the short sellers into hiding.
Fortinet (FTNT)
In the market for a firewall, or maybe a virtual private network? Chances are, Fortinet (NASDAQ:FTNT) has a solution for you and your business. This company’s quickly gaining a serious foothold in the burgeoning cybersecurity niche.
The bulls cheered on Monday as FTNT stock forged ahead. Is this the beginning of something bigger for Fortinet shareholders? Let’s analyze the last of today’s big stock charts.
- You just can’t miss that enormous green candlestick from several days ago. FTNT stock has been hurtling into space ever since, at least so far. Higher prices beget higher prices, as they say.
- The symmetrical triangle on the chart is basically old news now. The FTNT stock price is far enough above the triangle that it doesn’t even matter anymore.
- Also, the share price is far above the three significant moving averages on the chart. So, what’s next for FTNT stock? Let’s see how the trading community reacts at $150 as that should prove to be a pivotal price point.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.