Three Tech Stocks Showing Early Signs of a New Uptrend
With the S&P 500 driving onward and ever upward to start May, and the technology sector continuing to fire on all cylinders, investors are faced with the eternal question of whether to chase stocks in strong uptrend phases. The good news for investors is that several technology plays appear to be earlier in their uptrend phase, and could provide a decent opportunity for further upside.
If these names pique your interest, you may want to check out our latest weekly show on StockCharts TV, where we highlighted our top ten charts to watch for May 2026. In that episode, I also shared the StockCharts scan I used to identify all of the compelling charts!
Take-Two Interactive Software (TTWO)
Video game companies like Take-Two and Roblox (RBLX) were all moved into the Communication Services sector when it was formed back in 2018, but I still think of stocks like this as part of the larger technology umbrella. TTWO stands out because the price has recently broken to a new swing high on stronger price momentum.
Back in mid-April, Take-Two was testing price resistance around $220 and the RSI stalled out right around the 60 level. Over the last week, TTWO has now broken above this resistance level, with the RSI pushing above 60 to demonstrate strong buying power on the breakout.
Following this initial breakout, a subsequent drive above the 200-day moving average around $230 could confirm a new accumulation phase for this video game play. Any break below support $220 would suggest lack of buying power and a potential retrenchment in the previous trading range.
RingCentral (RNG)
One of my Market Misbehavior premium members asked about the chart of RingCentral, with the price having recently broken above key resistance around $42.50. Stocks in clear uptrends are generally considered “innocent until proven guilty” in my book, but this one deserves a second look because of the momentum characteristics.
RingCentral is set to report earnings later this week, and the recent price gap to a new 52-week high certainly seems to indicate a bullish setup going into this latest earnings release. The moving averages are in the proper order, with the 21-day EMA sitting above the 50-day SMA, and the 50-day remaining above the 200-day SMA.
The recent overbought condition, where the RSI pushed just above the 70 level, suggests RNG may experience at least a brief pullback to reset the uptrend phase. For a chart like this, I like to use the recent breakout point as an initial stop. The 21-day EMA is right around $42 as well, providing a fairly straightforward initial stop for any downside rotation this week. As long as RNG remains above this initial support, we’re inclined to consider this a strong uptrend phase.
CrowdStrike (CRWD)
While the semiconductor stocks have been driving the technology sector in Q2, propelling our equity benchmarks to new all-time highs, the software group is compelling in that it features charts, such as CrowdStrike, that are just showing new signs of accumulation. CRWD stands out for popping back above its 200-day moving average this week, suggesting a new accumulation phase.
The break above the 200-day moving average was marked by stronger price momentum, with the RSI pushing above 60 on this latest upswing. This breakout came after a brief consolidation just below the 200-day, in line with previous swing highs from March and April.
Applying a Fibonacci framework to this chart shows how CrowdStrike has experienced resistance at each of the previous Fibonacci retracement levels off the February low. Now CRWD is facing the “final” level of resistance, at the 61.8% retracement level around $480. If CrowdStrike can complete the rotation above this final level of resistance, we would consider a retest of the November 2025 high as a reasonable upside objective.
For more on these three names, along with seven others we’re seeing as potential opportunities in May, check out our latest video on StockCharts TV!
RR#6,
Dave
P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!
David Keller, CMT
President and Chief Strategist
Sierra Alpha Research LLC
marketmisbehavior.com
https://www.youtube.com/c/MarketMisbehavior
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.
