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Watch this one stay-at-home stock as the lockdown trade sells off, Oppenheimer analyst says

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Watch one stay-at-home stock as reopening trade takes off, Oppenheimer says

The stay-at-home trade is feeling more pain.

Stocks that rocketed higher during the lockdowns earlier this year such as Zoom Video, Etsy and DocuSign stumbled again Tuesday, stretching their sell-off into a second session. Those stocks fell to begin the week after positive trial data for a Covid vaccine from Pfizer and BioNTech gave hope of tackling the coronavirus crisis.

The technical setup in these stocks suggests the pullbacks have not been severe enough to disrupt the long-term trend, according to Ari Wald, head of technical analysis at Oppenheimer.

"The question … is really 'has there been damage on these pullbacks?' And if you look at a name like Etsy, we think the answer is no, that it's really just a function of the strong run-up that the stock had. Key support levels are still intact," Wald told CNBC's "Trading Nation" on Monday.

"There probably could be some additional near-term consolidation in what is still a long-term uptrend that's intact and pointed higher," said Wald.

Etsy traded above $117 on Tuesday. Wald pointed to $120 as a level to watch for support even if the day-to-day moves are volatile.

Michael Bapis, managing director of Vios Advisors at Rockefeller Capital, said during the same "Trading Nation" segment that the stay-at-home stocks may have "extended a little too far, way too fast." However, he still sees opportunity in some of these stocks in the long term even if they get squeezed by near-term pressure.

"I think you're seeing now [a move] back towards fundamentals a bit rather than momentum. I do believe some sense of stay at home is going to be here for a while," he said, naming Peloton and Netflix as two stocks that will recover over the long term.

Netflix and Peloton were up more than 2% on Tuesday, unwinding some of their sell-offs on Monday. Peloton remained 18% lower for the week, while Netflix was down 6%. Both are higher for the year, Peloton by as much as 260%.

"Those two companies, I think, will get through this in a positive way but it is going to matter about fundamentals and overall subscriptions," said Bapis.

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