Before we dive into the ideas, let's take a look at XLK which holdings consists of who's who of Tech companies ranging from Apple, INC to Google and makes up 24% of SPY holdings. We can notice that XLK has made a nice recovery and has been on an uptrend momentum since 2009. We're very likely to test the next resistance formed during the dot-com boom as shown in the chart below. It's good to understand the sector trend and strength in general if we want to play stocks in that sector although there are always stocks that can buck the trend.
(chart - freestockcharts.com)
4 Tech Ideas
We're not going to be looking at XLK holdings in this post, instead we're going to be looking at Tech companies priced with small to mid market cap and priced below $35.
I've used our prospecting engine in combination of our proprietary gauges in addition to our new features to identify past Berserker spike along with a sector filter to identify these ideas as shown below in the screenshot. We're going to ignore Nimble Storage as it's getting bought out.
ALRM – Alarm.com Holdings, Inc.
After a strong forth quarter earnings beat ALRM is currently in a strong uptrend testing $33 which is a strong resistant followed with $35 which will be the next battleground. Not to mention some Analysts are issuing price target of $35 and $40 if that's worth anything. I'll be looking to see if $30 can hold next week to open a long swing position with an initial target of $34.50.
TLND – Talend S.A.
Having shorted this stock few months after after the IPO, TLND has consolidated for a while and most recently made a nice recovery. Despite the recent public offering, price has held up nicely on Friday. If it doesn't break through $31 early next week I'm expecting some consolidation and to test near term support at $28 before it can make it's way back to test all time high of $34+. I'll be looking for a long swing entry if that happens to be the case.
CMCM – Cheetah Mobile Inc.
Cheetah Mobile has made a nice run up from $10 and has cleared near term resistance at $11. Friday's price indecision is a bit concerning and the company plans to report earnings next week. One interesting thing to note is the stock has around 19% short interest. How earnings are going to turn out is anyone's guess but I'll be looking to take a position after the earnings in either direction.
CMTL – Comtech Telecommunications Corp.
After posting a Q2 profit CMTL has cleared the near term resistance of $14 and it's looking like it wants to fill the gap it formed in mid 2016. If the volume continues to stay above average and Elasticity starts to base but stay above 0.10, I'll be looking for an entry to ride this up to $16 in the coming week.
Alright, That's it for now folks. Happy and Profitable trading for the rest of the week!
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Image credit - frankcurzio.com | disclaimer.