Looking Ahead: Tech Stocks

The tech-heavy Nasdaq 100 Index rose nearly 200 points on Tuesday, relieving deeply oversold technical conditions while allowing nervous shareholders to get a good night's sleep. However, sector headwinds will likely continue in the coming months, lowering the odds that big tech stocks will return to bull market highs. As a result, investors with heavy exposure may wish to take partial profits on this bounce and use the cash to pick up downside protection.

Dow component Apple Inc. (AAPL) has jumped to a weekly high above $180 this week but is still trading well below the descending 50- and 200 day exponential moving averages (EMAs), carving a major decline that could eventually reach $160. (See also: Wait for $160 Price Level to Buy Apple Stock.) More importantly, the stock is now stuck within a massive trading range that could dictate price action into the next decade, denying profits to trend-followers.

Read the full article at Investopedia.

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