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Here’s why a top technician thinks Facebook has more room to run

Tech stocks are white-hot, and there's one name, in particular, that shows no signs of cooling off.

The tech sector touched its highest level since September 2000, and the Nasdaq Composite hit another record on Monday as names like Amazon, Alphabet, Microsoft, Facebook and Apple surged to new highs. The five stocks, which represent more than $2.8 trillion in market cap, have been leading the market this year — up a respective 27, 17, 12, 32 and 27 percent in 2017.

As Apple and Facebook prepare to report earnings this week, top technician Carter Worth is eyeing Facebook for even more gains.

"If I had to pick between Apple and Facebook, I'm going Facebook," Worth said Friday on CNBC's "Options Action." "[Facebook] has lived in this precise channel … I think we have a little bit more to go." The stock has been in a precipitous uptrend for the last five years, gaining nearly 300 percent.

As far as Apple is concerned, the Cornerstone Macro technician said, "What I'm thinking at this point is that Apple has some check back risk, which is often what we see when a stock moves to an all-time high and moves back … Apple has some downside risk going into its [earnings]." Worth noted that the stock has broken above support at around $132 per share, and could fall back to that level.

"Stick with the bullish bet on Facebook," he added.

Apple is set to report earnings after the bell on Tuesday, and Facebook reports after the bell on Wednesday — both stocks are implying a 4 percent move in either direction, which represents a $45 billion shift in market cap.

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