CNBC's Jim Cramer on Tuesday doubled down on his forecast that Big Tech stocks have more upside in store as the market steers toward the end of the year.
Cramer, with the help of wisdom from a trusted analyst, is forecasting these stocks will trend higher, potentially staging double-digit rallies to close out the year.
"If the FAANG stocks can stay on the market's good side, then the charts, as interpreted by Carolyn Boroden, suggest they have a lot more room to run," the "Mad Money" host said.
Boroden, a chart analyst who runs FibonacciQueen.com and is a contributor at RealMoney.com, utilizes what's known as Fibonacci numbers to study past stock swings and chart future moves. The analyst sees promising moves for FAANG if each stock can hold above their November lows, Cramer explained.
On Monday, Cramer spoke out against the market rotation out of the fast-growing stocks — those that led the major averages to new highs after a massive market sell-off in early 2020 from the pandemic shutdown — and into other opportunities in small-cap and cyclical stocks. Investors have adjusted their portfolios to account for economic recovery as drug researchers see promising progress on coronavirus vaccines.
Technical analysis is useful when fundamentals are unclear, Cramer said.
"I think she's right. This is the point on the calendar when money managers crowd into the year's biggest winners to show their clients how smart they are," he said. "That means winners like Facebook, like Amazon, like Apple, like Netflix, and of course, you know, I think Google, should keep winning, at least for the next four weeks."
Boroden, according to Cramer, mapped out these potential runs for the companies if their stocks can hold above key levels:
Disclosure: Cramer's charitable owns shares of Facebook, Amazon, Apple and Alphabet.