Tech Showing Some SaaS: Software Stocks Near Key Level to Bounce – All Star Charts

Anaplan, Inc., CrowdStrike Holdings, Inc., Okta, Inc. – some of the most resilient technology stocks have recently slipped to a key level and are poised for a possible bounce. That’s according to All Star Charts, which pointed out software is approaching oversold territory.

 

“Most Technology subsectors like Cloud Computing, Cybersecurity, and Internet, have been falling relative to the S&P 500 and Technology as a sector, but Software has held up well,” All Star Charts wrote in a client note. “The bull thesis was that we’d see rotation back into those other areas, but instead we’re seeing Software begin to roll over and catch down to the others. Momentum has been diverging for a while and is now threatening to enter oversold territory as the Software/S&P 500 ratio tests key support. A break of this level would likely signal further relative weakness in Technology as a group and support the thesis of further rotation into areas like Financials that have recently benefited from the move out of high-flyers and into laggards.”

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