Several stocks are trading at extreme levels, and a top technician says one name has even more room to run.
Although retailer Michael Kors is trading 36 percent above its 200-day moving average, Craig Johnson, chief market technician at Piper Jaffray, said it’s an attractive pick.
The stock has recently broken a major downtrend, Johnson noted. Shares of Michael Kors have been cut in half since hitting an all-time high in mid-2014, but since bottoming out in June, the stock has rallied more than 70 percent. Despite the recent move, Johnson says the rally hasn’t yet run its course, and he’d be a buyer on any pullback.
“When I see these kinds of charts, what you typically see happening is a very strong momentum response when you first reverse the downtrend and then you ultimately back up and retest where you broke out from. I think that’s exactly what’s happening in Michael Kors,” Johnson said Wednesday on CNBC’s “Trading Nation.”
Another name that looks interesting, among stocks trading well above their benchmark moving averages, is semiconductor manufacturer Nvidia, said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management.
“Nvidia effectively is a trade on bitcoin,” Schlossberg said Wednesday on “Trading Nation,” adding that should bitcoin keep surging as it has this year, Nvidia will surely follow.
Both the stock and the cryptocurrency have risen triple digits in the past year.
Shares of Michael Kors were higher on Thursday, hitting their highest level in over a year, while shares of Nvidia rose over 1 percent on the session.