Breakout: 3 Rocketing Tech Stocks

After technology stocks in October suffered their worst month since 2008, the sector again tested investors' nerves as the tech-laden Nasdaq Composite Index (IXIC) slumped 2.78% on Monday to spearhead the market sell-off. Although investors continue to fret over tech sector valuations and the ability for FAANG stocks to deliver consistent double-digit revenue growth, the space still offers some selective trading opportunities in industry-leading names that have shown explosive price breakouts.

Traders who are looking for technology stocks showing sharp upward momentum should add these names to their radar. Here are several trading ideas to consider.

Founded in 2000, TripAdvisor is one of the world's largest online travel companies. The company's website provides over 700 million reviews and information on hotels, restaurants, vacation rentals and experiences. TripAdvisor generates the lion's share of its revenue through advertising and commissions via its "TripConnect Instant Booking" service. Trading at $62.67, with a market capitalization of $8.63 billion, the stock is up a whopping 81.86% year to date (YTD), outperforming the leisure industry average gain by 82.7% as of Nov. 13, 2018.

TripAdvisor's share price tracked higher for the first seven months of the year before consolidating over August, September and October. Since crossing above the 50-day simple moving average (SMA) late last month, the stock has rallied sharply higher to print a YTD high of $69 on Nov. 8 – the day the company reported better-than-expected third quarter (Q3) earnings. Traders should look for an entry point between $60 and $62, where the stock is likely to find support from the June and July swing highs. As this is a momentum play, keep stops tight and let winners run.

Symantec, with a market cap of $13.95 billion, is a global provider of cybersecurity products, services and solutions. The company, founded in the early '80s, operates through two divisions: consumer digital safety and enterprise security. It owns the popular anti-virus brand Norton. Symantec's enterprise business contributes most of the company's revenue, although the consumer segment drives the most profit. As of Nov. 13, 2018, Symantec stock is down 19.9% YTD, but the stock has gained 16.09% over the past three months. Investors receive a 1.35% dividend yield.

The May 14 gap – relating to a misleading information probe – jumps off Symantec's chart. From that time through October, the share price continued to grind lower. Sentiment changed when the company released its second quarter (Q2) earnings that exceeded analysts' profit and revenue expectations. Symantec stock received a further boost to make a multi-month high on Nov. 6 when rumors swirled that private equity firm Thoma Bravo approached the company about a possible acquisition. Traders could consider opening a long position at the $20 level – this price area finds support from the 50-day SMA, horizontal line price action and the 38.2% Fibonacci retracement level. Think about placing a stop-loss order near the Nov. 1 close and taking profits at $25, where the price may encounter resistance from the February and April swing lows.

With a market cap of $19.48 billion, SBA Communications owns and leases wireless communications infrastructure, such as cell towers throughout North American and South America. The company's customers install equipment on the infrastructure to support their wireless networks. SBA Communications owns over 16,000 cell towers in the United States and 8,000 towers in Brazil. YTD, the stock has returned 5.23% while returning 16.46% over the past month as of Nov. 13, 2018.

The company's share price has traded within a broad falling wedge throughout most of 2018 but recently broke above the pattern's upper trendline and 200-day SMA. SBA Communications' price has since pushed higher after the company surpassed the Street's Q3 top-line and bottom-line projections. Those who wish to trade the stock should look to enter between $160 and $162.5, where the price finds a confluence of support from the previous resistance area. Traders could sit stops beneath $150 while locking in profits using a trailing stop as the stock moves higher.