This FANG stock could be your best bet in 2020, market watchers agree

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This FANG stock could be your best bet in 2020, market watchers agree

One FANG stock is breaking out.

Google parent Alphabet has rocketed to records four days in a row, soaring 5% higher just this month.

Piper Sandler chief market technician Craig Johnson says the stock could pull back before roaring even higher.

"Google is finally breaking out of the consolidation range it's been in for a long time, 2+ years," Johnson said on CNBC's "Trading Nation" on Monday. "What I would expect from a technical perspective is it to pull back toward about $1,300, where you broke out from. Then I can see a measured objective based upon the size of the base that could very easily take this stock up toward $1,550 to $1,600."

Alphabet traded at $1,398 at midday Tuesday. A move to $1,600 implies 14% upside.

BK Asset Management's Boris Schlossberg also counts himself an Alphabet bull. He sees this as a stock to hold for the long term.

"Google is a very, very strong buy. Basically the rule of thumb always whenever a stock makes record highs, whatever near-term overbought condition it is in, long term it's almost always a good buy if the fundamentals support it," said Schlossberg during the same segment.

Schlossberg adds that at this juncture Alphabet's fundamentals look particularly strong.

"It's got a tremendous position in search. Search is essentially invulnerable to any kind of economic downturn. It has more net cash on its balance sheet than anybody besides Berkshire Hathaway," he said.

He sees two ways to play shares — either selling puts against the stock or, his preferred method, going long Alphabet against a basket of FANG stocks, which includes Facebook, Amazon and Netflix.

"If we get a downdraft in the stock market, I think the other FANGs are going to perform much worse than Google," he said.

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