Charts Suggest Global Tech Stocks Are Headed Higher

As the global workforce now looks to new ways of conducting business, technology companies are rising in prominence due to innovative new devices and the development of key internal components that empower individuals to work remotely. In this article, we'll take a look at several key charts of world-leading tech companies and try to determine how active traders will be looking to position themselves over the weeks and months ahead.

iShares Global Tech ETF (IXN)

Exchange-traded products such as the iShares Global Tech ETF (IXN) are the go-to choice for traders when looking to get a sense of where a key segment of the global economy such as technology is headed. As you can see from the chart below, the price has recently broken above two influential trendlines, which is a common buy signal used by followers of technical analysis.

The bounce from the support of the nearby 50-day moving average will likely be used as confirmation that the momentum is in the favor of the bulls. From a risk-management perspective, stop-loss orders will most likely be placed below $241.97 or $213.65 to protect against a sudden shift in underlying fundamentals or in investor sentiment.

Chart showing the share price performance of iShares Global Tech ETF (IXN)
StockCharts.com

Apple Inc. (AAPL)

At the top of the global tech companies sits Apple Inc. (AAPL), which has recently broken above a key trendline, as shown in the chart below. The recent break beyond $425 will likely be used by trend traders to mark the beginning of the next leg of the primary uptrend. Depending on risk tolerance, stop-loss orders will most likely be placed below the trendline or one of the long-term moving averages.

Chart showing the share price performance of Apple Inc. (AAPL)
StockCharts.com

NVIDIA Corporation (NVDA)

Another top tech company that will be on the radar of many traders this week is NVIDIA Corporation (NVDA), which is scheduled to release quarterly earnings on Wednesday after the market close. Taking a look at the chart below, you can see that the bulls have recently pushed the price beyond a key trendline, which suggests that traders are maintaining a bullish bias leading into the earnings release. As discussed in the cases above, stop-loss orders will most likely be placed around one of the long-term moving averages or one of the nearby trendlines, depending on risk tolerance and investment horizon.

Chart showing the share price performance of NVIDIA Corporation (NVDA)
StockCharts.com

The Bottom Line

Globally, technology companies have become more important than ever, and their strong performance over the past quarter suggests that the uptrend will likely continue for quite some time as the global workforce looks for new ways of conducting business.

At the time of writing, Casey Murphy did not own a position in any of the assets mentioned.

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