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These stocks are trading at extremes, and they could go even higher

Several stocks are trading at extreme levels, and a top technician says one name has even more room to run.

In the S&P 500, 17 stocks are trading 25 percent or more above their 200-day moving average. Among them are Nvidia, Michael Kors, PayPal, Estee Lauder and PulteGroup.

Although retailer Michael Kors is trading 36 percent above its 200-day moving average, Craig Johnson, chief market technician at Piper Jaffray, said it's an attractive pick.

The stock has recently broken a major downtrend, Johnson noted. Shares of Michael Kors have been cut in half since hitting an all-time high in mid-2014, but since bottoming out in June, the stock has rallied more than 70 percent. Despite the recent move, Johnson says the rally hasn't yet run its course, and he'd be a buyer on any pullback.

"When I see these kinds of charts, what you typically see happening is a very strong momentum response when you first reverse the downtrend and then you ultimately back up and retest where you broke out from. I think that's exactly what's happening in Michael Kors," Johnson said Wednesday on CNBC's "Trading Nation."

Another name that looks interesting, among stocks trading well above their benchmark moving averages, is semiconductor manufacturer Nvidia, said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management.

"Nvidia effectively is a trade on bitcoin," Schlossberg said Wednesday on "Trading Nation," adding that should bitcoin keep surging as it has this year, Nvidia will surely follow.

Both the stock and the cryptocurrency have risen triple digits in the past year.

Shares of Michael Kors were higher on Thursday, hitting their highest level in over a year, while shares of Nvidia rose over 1 percent on the session.

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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.

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