The company sailed past earnings and sales expectations in the first quarter, but its forward guidance fell short due to the war in Ukraine and China. The initial response saw the stock fall in after-hours trading, following in the footsteps of many other companies.
There was something interesting that happened. There was an abrupt reversal higher after selling pressure dried up. On Thursday, the stock closed up 5%, marking a stunning reversal from the initial selloff after hours on Wednesday. There was a domino effect on the rest of the market. Tech stocks gained a lot for the week.
With bulls gaining a foothold in the technology sector, these three stocks are worth buying
The ticker is present.
The company is owned by the company.
It was a price.
It’s called the NVDA.
Is it possible to say that it is possible to say that it is possible to say that it is possible to say that it is possible to say that it is possible to say that it is possible to say that it is possible to say that it is possible to say that it is possible
The price is $189.63
It’s AAPL.
It is Apple.
The price is $150.01.
MSFT is a computer operating system.
Microsoft is a company.
The price was $273.05
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The tech stock that caught the attention of the market was Nvidia.
Since it was the catalyst for the reversal, it deserves the first mention. I made a case for the sudden change in character, but let’s look at how the trend structure has changed. The stock entered earnings at a key level. Its price tested old support and needed a rally to stave off another breach.
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This made the initial response to earnings so unnerving. There was a chance that the after-hours swoon would snowball into a major breakdown. But it wasn’t. From the peak of $346.47 to the recent low of $155.67, prices had already been cut in half. When higher interest rates and an expected economic slowdown might finally be priced into tech stocks has been a question for many investors. The positive response from Nvidia suggests we are there for semiconductors.
The stock could make a run for $210 with Friday’s follow-through.
The trade is to buy the July bull call spread for $3.35.
The risk is $3.35 and the reward is $6.65
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Apple is a technology company
The thinkorswim platform is from TD Ameritrade.
The price action in Apple at the end of the week holds promise. Friday saw prices jump 4% to end with a marubozu candle, as buyers jammed prices higher.
By closing above the 20-day moving average and at the old resistance pivot near $150, AAPL stock finished the week within spitting distance of a bullish break out. This will be the second time this year that prices broke above a daily resistance zone. I think it will set the stage for a return to the 50-day and 200-day moving averages.
The trade is to buy the bull call spread for $4.20.
The reward is $5.80 and the risk is $4.20
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Microsoft is a Tech Stock.
The thinkorswim platform was developed by TD Ameritrade.
Microsoft is one of three tech stocks that has a double bottom pattern that could end its downtrend. The 2% gain on Friday confirmed the reversal formation with buyers defending the $250 zone. Break resistance is better than holding support, as traders like to say.
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That happened before the weekend. The 20-day average was cleared by the rally. MSFT stock faces a ton of overhead resistance that could make it difficult to turn around its business. If Microsoft stumbles, I like selling put spreads to create a broader profit range, rather than building an aggressive play that will fail.
The trade is to sell the July bull put spread for $1.60
The bet is that Microsoft’s price will be above $250 at the end of the year. The maximum gain is $1.60 and the maximum loss is $8.40.
Tyler Craig didn’t have any positions in the securities mentioned in the article on the date of publication.
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