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.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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