A handful of Nasdaq 100 stocks have broken their long-term trend as tech names came under pressure.
Three of those may have been unfairly punished, said Boris Schlossberg, managing director of FX strategy at BK Asset Management.
"I absolutely love Amazon, Adobe and Zoom for one very simple reason. That's because all these companies are essentially subscription-based companies with very, very loyal customer followings and an absolutely market-dominant position," Schlossberg told CNBC's "Trading Nation" on Friday.
Schlossberg elaborated that Amazon is a "blue chip of a lifetime" with a deep moat in retail, while Adobe is a "fortress-like business" with its software portfolio.
Zoom, however, could still have more downside, though Schlossberg said it is still a clear winner given how widely it has been adopted during the coronavirus pandemic.
"Zoom, I think, has established a major beachhead. That having been said, it's the biggest stock risk at this point. It easily could come in 100 more points to the downside, and still be relatively highly valued," he said.
Craig Johnson, chief market technician at Piper Sandler, is not surprised by recent weakness in these names. He said a lot of the high-momentum, high-growth stocks have been consolidating in a sideways pattern since late summer.
"Take Amazon as an example here. It moved sideways in this consolidation range, roughly about a 500-point consolidation range, but it has been an underperformer. Now, you could say that the stock is resting or maybe we need to see a deeper correction," Johnson said during the same interview.
He said Amazon needs to hold support at the lower end of its range at roughly $3,000. If it fails to do so, its next support comes in at $2,500. It traded at roughly $3,040 on Monday.
Adobe and Zoom, meanwhile, look to be in a downward-trending price channel, he said. Adobe could fall to $425 and then, if breached, likely down to $385, he said – it was trading at $439 on Monday. Zoom, too, could drop to $235 from its $332.
"I think it's probably going to be challenging over the next couple months until we finally get a deeper washout in these tech stocks and, frankly, I think it's a bit overdue," said Johnson.