The Canadian Technician

Little Known Communications Tech Names Hit New Highs

 | 

After the mega-caps announced earnings, the crowd continues to drift towards those names. I was scanning through the May - new highs list - and found a few gems that are just breaking out. I used the phrase "little known," but they are gaining interest quickly.

Audiocode (AUDC - follow this link to learn more) looks a little extended after a double off the $17 area. With the rising keltner channel or the 20-day moving average, there might be a better entry there. This voice technology area seems to be soaring.

Bandwidth (BAND) is another play in voice communications. (Follow this link for more information.) The stock has already launched significantly here and many investors will be looking for a little market weakness to find an entry. This one is another watchlist name, as it is too extended to enter here, in my opinion.

When I see these software names so strong, then look across at TEAM, WORK and MSFT, the whole home office concept is going to be the single biggest game changer on the back end of this pandemic. As we are forced to use the technologies that have been building over the last twenty years, the backbone is in place for transformational change. Even a few years ago, the low internet speeds at home would not have been enough for seamless communications. Now, the change is as radical as asking if television networks will continue to have the hosts broadcast from home. It really is a changing world and we now have this massive developing theme less than 2 months after stocks hit bottom in March. There are new names emerging all the time.

As this theme rolls out, it should be a significant one to watch. For more information, watch my YouTube shows on StockCharts.com and follow me on Twitter (@Schnellinvestor) for other ideas.

Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies


Want to stay on top of the market's latest intermarket signals?

– Follow @SchnellInvestor on Twitter
– Connect with Greg on LinkedIn
– Subscribe to The Canadian Technician
– Email at info@gregschnell.com

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
Subscribe to The Canadian Technician to be notified whenever a new post is added to this blog!
comments powered by Disqus