Just when it looked like a long-awaited and seasonally well-timed correction was underway, oversold bargain-hunting this week has some wondering if the relative bottom has already been touched. And it’s not entirely for naught either.
At Monday’s low, the Nasdaq traded just over 11% off its recent high to narrowly dip its toes into a bonafide correction. But respectfully, it’s the type of decline that’s marked the completion, rather than the start, of more than a few meaningful pullbacks. The fact is, larger corrections are simply much rarer events. That’s not all though.
InvestorPlace – Stock Market News, Stock Advice & Trading Tips” data-reactid=”19″>InvestorPlace – Stock Market News, Stock Advice & Trading Tips
follow-through day to confirm a healthier market environment before new purchases are considered. So if you’re going to buy, you ought to buy smart.
With some stocks carving out durable bottoming patterns, here are 3 Nasdaq stocks to buy:
AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) still have more base building to do before a truly sure-footed rally emerges.” data-reactid=”29″>But bear in mind the Nasdaq and lopsided influencers Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) still have more base building to do before a truly sure-footed rally emerges.
Nasdaq Stocks to Buy: Netflix (NFLX)
Charts by TradingView
The first of our Nasdaq stocks to buy is Netflix. The streaming video on demand (SVOD) champ has started forming a first-stage corrective base. The pattern is developing roughly 10% above a massive two-year long “W” formation, which the stock broke out of in mid-April to notch fresh, market-leading highs.
Currently, NFLX is working to establish a pivot low and third challenge of the 38% retracement level tied to the stock’s Covid-19 low. If the pattern is confirmed next week, another, smaller bullish “W” could be underway. And if oversold stochastics support the low by forming a bullish crossover, Netflix should be a great Nasdaq stock to buy with plenty of technical ammo to move aggressively higher.
Vertex Pharmaceuticals (VRTX)
Charts by TradingView
The next of our Nasdaq stocks to buy is Vertex stock. Since breaking out in 2017 to new highs shares have channeled their way to greater gains. And since the start of 2020 the price action has turned more bullish and riper for buying.
A hammer pivot low formed off the 50% retracement level from VRTX’s March bottom was confirmed this week. Technically, this sets up a higher-low pattern for a new, steeper-but-manageable channel.
Coupled with a bullishly-aligned, oversold stochastics indicator, this is one Nasdaq stock to buy positioned for investors to act today.
First Solar (FSLR)
Charts by TradingView
TSLA) or a hydrogen play like Ballard Power (NASDAQ:BLDP) these days. But don’t make the mistake of turning a blind eye to FSLR.” data-reactid=”110″>The last of today’s Nasdaq stocks to buy is First Solar. Shares of the solar giant don’t generate the noise of a motoring Tesla (NASDAQ:TSLA) or a hydrogen play like Ballard Power (NASDAQ:BLDP) these days. But don’t make the mistake of turning a blind eye to FSLR.
better-than-expected earnings release. It’s constructive and don’t let others tell you otherwise.” data-reactid=”111″>Technically, First Solar is forming a handle consolidation within a large corrective “W” base. The pullback has developed after shares hit new marginal highs in August following the company’s better-than-expected earnings release. It’s constructive and don’t let others tell you otherwise.
To be fair, FSLR’s price action also maintains the appearance of a double top pattern. But with shares up just 10% since 2014 and more than six full years of base-building under its belt, this Nasdaq stock to buy looks even better positioned for going long and big-time profits looking out into 2021.
@Options_CAT and StockTwits.
More From InvestorPlace
3 Nasdaq Stocks to Buy Off Their Corrective Bottoms appeared first on InvestorPlace.” data-reactid=”121″>The post 3 Nasdaq Stocks to Buy Off Their Corrective Bottoms appeared first on InvestorPlace.
