Stocks are suffering another steep decline Wednesday.
The Dow Jones Industrial Average during the session lost all of its gains leading back to President Donald Trump's inauguration and markets suspended trading for the fourth time in two weeks after the S&P 500's plunge. The Nasdaq Composite also fell 4.7% on the day.
But, despite the major sell-off, Todd Gordon of Ascent Wealth Partners said major tech stock Microsoft still looks like a buy even as the coronavirus crisis grows more severe. This is largely because of what Gordon sees in the charts of the Nasdaq 100-tracking ETF (QQQ) versus that of Microsoft.
According to Gordon, QQQ has now fallen back to an old key level: its 200-week moving average.
"It held support at the end of 2018 into 2019 before quickly rebounding, [then falling] into the sideways range that we saw in 2019 when many were trying to convince [everyone] that a recession was imminent," he said Wednesday on CNBC's "Trading Nation."
Since then, QQQ rallied but is now retesting its 200-week moving average.
Microsoft, however, hasn't "come anywhere near" its 200-week moving average despite the sell-off. That leads Gordon to say there is some "nice relative strength" in the tech giant. Its stock would need to fall below $98 to breach its 200-week moving average. It closed Wednesday at $143.60.
Microsoft is currently 12% lower this year, while QQQ has fallen 19%.
Disclosure: Ascent Wealth Partners holds Microsoft.