×

With the giants of tech set to report earnings, Alphabet is the one to buy: Technical analyst

In a big week for tech earnings, Oppenheimer technician Ari Wald is looking at one stock in particular to lead a Nasdaq rally.

While tech titans Apple and Amazon are also reporting this week, Wald is focused on Alphabet, saying that it is the big-cap tech stock to buy ahead of its Thursday earnings release.

On a long-term chart of Alphabet, Wald says that he sees the stock finally breaking through $800 "resistance" that had been in place since late last year. If anything, the tech company looks to still be following what Wald sees as a long-term uptrend that has been in place since January 2015.

"We think that it's setting up a new leg of outperformance in the direction that [Alphabet] has already established long-term uptrend," Wald said Monday on CNBC's "Trading Nation."


Wald sees the stock rising above $900, for a 7 percent rally from Tuesday's opening price.

In fact, Tuesday's opening price marked an all-time high for the stock. The shares have recently been fueled by the overwhelming positive reviews of the new Google Pixel smartphone.

It's Alphabet's more recent hardware plans that lead Boris Schlossberg, managing director of FX strategy for BK Asset Management, to believe that the company could be set for a "second resurgence."

"I think it's interesting that [Alphabet] could become just as much of a hardware company as it is a software company, if they can succeed in this whole new arena of artificial intelligence," Schlossberg said Monday.

Alphabet's shares are currently up more than 6 percent year to date after struggling for the first part of the year. Last quarter, the tech company crushed earnings estimates, which sent stocks shooting past $810 in the after hours to make what was then a new all-time high for Alphabet.


Videos

Trades to Watch

Trader Bios

About

Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Brian Sullivan

Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

Read more

Connect