With the Nasdaq composite, S&P 500 index and Dow Jones industrial average seemingly rangebound, Apple stock leads five top tech companies that are trading at or near buy points. FANG stocks Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google parent Alphabet (GOOGL) join the list along with Apple (AAPL).
FANG Stocks Plus Apple Stand Out In Nasdaq
Grouping the original FANG stocks and Apple together creates what some on Wall Street call the FANG+ stocks or FAANG names, which are five of the largest tech stocks in the Nasdaq. Netflix has been on a tear in 2018, and leads the group with a highest-possible IBD Composite Rating of 99.
Amazon follows close behind with a 98, while Facebook earns a 96 despite its big sell-off earlier this year. Apple and Alphabet round out the group with an 88 and 83, respectively. Top stocks tend to have high Composite Ratings as they launch big runs.
Netflix, Apple and Amazon are all members of IBD’s Leaderboard.
Apple Stock Flirts With Buy Range
Along with the Nasdaq, Apple stock has been trading sideways for the past few weeks. Apple has been flirting with the upper end of the 5% buy range from a double-bottom base buy point of 179.04. The 5% chase zone rises to 187.99, and Apple is just above that, closing at 188.58 on Friday. Apple hit a record high of 190.37 on May 10.
If Apple remains extended from the buy point, investors could soon get another chance to buy if it forms a three-weeks-tight pattern. If a stock closes in a tight range for three straight weeks, and then moves above that sideways action, that’s a chance for investors to add shares to their position.
Looking at a weekly chart on MarketSmith, three-weeks-tight patterns are highlighted in aqua whenever a stock has formed one, so keep an eye on Apple’s weekly chart.
Netflix Stock In Buy Zone
Netflix is trading at all-time highs and, after breaking out of a short flat base with a 338.92 entry point, shares remain within the 5% buy zone. Shares rose 0.6% to 351.29.
Volume was tracking about average on the breakout day, but was notably strong during the following session. Netflix stock has a strong relative strength line, which measures price performance vs. the S&P 500, a positive confirmation.
Will Amazon Take Out Buy Point, Prior High Soon?
Amazon is looking to stay above the 1,600 price level, which has caused recent resistance. Shares are nearing a 1617.64 buy point from a cup base. But investors may want to wait for Amazon to clear the all-time high of 1638.10 before initiating a position.
Facebook, Alphabet Form Handles
Facebook and Google parent Alphabet have now formed handle buy points, providing earlier entries than breakouts above their prior highs. Facebook’s new buy point is 188.42.
Alphabet has a buy point of 1,118.25, and the handle is at maximum depth. If the stock dips below its recent low, the handle will no longer be valid. Investors could also wait for the 1,178.26 buy point just above the middle of the “W” in Alphabet’s double-bottom base.
Both Facebook and Alphabet have weak relative strength lines, which should be taken into consideration when thinking about making buys.
