Tech stocks are getting wrecked this week, but one technician says there's one name that you should own amid the turmoil — Apple.
Big tech tried to recover on Tuesday after getting pummeled in the prior session. Facebook was at the helm of the carnage, dragging down the entire sector as the social media giant got slapped again with allegations over the weekend about data misuse.
Facebook fell nearly 7 percent on Monday making it the worst-performing stock in the S&P 500. The slide continues Tuesday morning, with shares down more than 4.5 percent. Chris Verrone, head of technical analysis at Strategas Research Partners, said there's more pain ahead for the social giant.
"Over the last four years, consistently Facebook in 2014, 2015, 2016 and 2017 revisits the lower end of its uptrend," Verrone said Monday on CNBC's "Trading Nation."
It has been 16 months since Facebook last tested the lower end of its uptrend, and the stock still has about $10 to the downside before reaching that point, according to Verrone. "We think $160, $165 is ultimately where [Facebook] shakes out," he added. It was trading around $164 on Tuesday morning.
Comparing its performance to the broader market, Verrone noted that "Facebook relative to the S&P peaked all the way back in November. The stock has been an underperformer for the better part of the last three to four months. We don't think the 200-day moving average holds."
Another stock that could be at risk from a technical standpoint is Amazon, according to Verrone.
"Similar story here with Amazon. This stock is still 25 percent above its 200-day moving average, ... some downside risk here in Amazon," Verrone said.
Much like Facebook's chart, over the course of the last three years, Amazon has also tested its 200-day moving average annually, Verrone noted. "We suspect that it happens again sometime in 2018," he added.
However, one tech name that Verrone says is a must own now — Apple.
"What's important is Apple has actually help up against the S&P," Verrone said. Since the lows on Feb. 8, Apple has been a leader, according to Verrone. "S&P is up about 6 percent off the lows, Apple is up 13 percent. It's holding the $170, $175 level, and I think ultimately this one makes new highs," he said.
Apple shares were trading at the $176.40 range midday Tuesday.