Google 'Structurally Sound,' Apple 'More Attractive': Pro
"I'm still bullish on this stock technically. I think it's premature to be bearish or to sell shares here," Mark Newton, chief market technician at Greywolf Execution Partners, said on "Squawk on the Street." He called the stock "structurally sound," and he said increased trading volumes would confirm an upward momentum.
"I think the stock could get up to as high as $850 to $880," he said, with Google breaking out of what he sees as a multi-year range. "The fact that we've gotten above the prior high of $775 really puts the stock in an excellent position technically, in my view."
On Apple, Newton said that the stock's pullback over the past several months puts it at levels that are "more important" on a technical basis.
The stock broke out of its multi-year range in 2011 and 2012 but has now pulled back to levels that Newton thinks make the stock "more attractive technically," even relative to other technology names.
"The level near $500 is going to be very important. If the stock gets over $500, I think we could get over $565 up to $600 as legitimate targets," he said. "The recent lows really need to hold. If you get under $437 it's likely to pull back to $390 or so, but I think it's a good risk-reward."
Generally, "tech is starting to show more signs of stabilizing," Newton said, which he believes is more attractive than other sectors like financials or industrials, which have outperformed recently.