By Nicholas Santiago on June 8th, 2010 3:20pm Eastern Time
Technology stocks have been hit very hard lately since the market top in mid-April. The tech heavy NASDAQ Composite is lower by nearly 15 percent since that 2010 high. Many of the leading technology stocks have sold off sharply and remain weak. However, there are a few key names that are holding up very well in this turbulent environment.
One key stock to watch is Akamai Technologies Inc (NASDAQ:AKAM). This stock just made a new 52 week high just four days ago at $43.50. The stock is trading lower today by 1.04 to $40.18. It is still trading above its daily 20 and 50 moving averages making the stock attractive on a technical basis. The downside support levels should the stock trade lower would be $36.50. If the market catches a bounce down here this stock could trade to its recent high and possibly to the $45.00 level.
Sandisk Corp (NASDAQ:SNDK) is another leading name that has held up very well in this major technology sell off. The stock is trading lower today by 0.85 to $42.45. This stock is still trading above its daily 50 moving average and could be viewed as consolidation on the charts. When a stock holds up this well in a major market correction this stock can be bought on any market bounce as it is showing relative strength.
In major down trends or market corrections it is best to find the stocks with strong relative strength. Akamai Technologies Inc and Sandisk Corp are both showing good relative strength. Therefore, on any market bounce these stocks can be bought as market leaders. However, should these markets flush lower even the strong names will get dragged down.
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