Evercore ISI technician: Apple leads 3 top tech stocks that could take markets to new records

(FinancialPress) — The 3 major stock market indexes began the year soaring to new heights and breaking important milestones. The S&P broke 2,700, the Nasdaq closed over 7,000 for the first time ever, and the Dow cracked 25,000.

As the leading force behind that growth continues to be the tech sector, Rich Ross – Evercore ISI technician, believes that 3 mega-cap stocks that operate within that sector could be responsible for taking markets to great, new virgin heights in 2018.

“The calendar has changed, but the game remains the same. The name of the game is to buy big-cap technology,” he said in a phone interview with CNBC.

He started his analysis with the top performer of 2017 – Nvidia:

Nvidia shares have more than doubled over the last 12 months, and are just shy of their current record height. Ross‘ analysis of the stock‘s chart tells him that it‘s poised for an explosive breakout soon.

“We set it up last week … you had a 15 percent pullback, but importantly, now we have tested and held key support [above the 100-day moving average].”

Added to that, the fact that the stock has remained on a solid base of support for 30 days and, on Wednesday, it gained over 6% thus claiming the coveted 50-day moving average.

“That has set Nvidia up for a breakout to a new high here … we’re talking about $250 with potential upside to $300 over time,” Ross said.

Nvidia stock is trading just 2% below its all-time high.

Following Nvidia, Ross analyzed the King of the Jungle: Amazon:

He notes that the e-commerce giant has formed a bull-flag continuation pattern –  which are often looked as a sign of a continued uptrend by technicians.

“I think the stock gets up to $1,250 and as high as $1,400.”

Amazon shares hit an all-time high of $1,208.50 on Thursday.

Finally, he switched his focus to Apple:

“Finally, we finish with the big boy here. I’m still beating the drum here for Apple,” Ross said.

He anticipates a big breakout, based on its multibase support and the fact that it also is enjoying a bull-flag pattern. “Buy this stock in anticipation of earnings in the first week of February.”

“I think this stock breaks out here and tests that $195, $200 [level], and that gets you to that trillion-dollar market cap,” he added.

A poll published by FactSet has analysts reporting earnings of $3.78 per share on $86 billion revenue.

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