US Tech Stocks To Watch

Posted by Rob

January 30, 2008

Despite marked declines in the US Economy, the credit crunch crisis and poor performance on Wall Street, a number of Tech stocks have gone against the tide by performing well during these troubled times.

Forbes has a list of America’s 25 Fastest-Growing Tech Companies, with a breakdown of performances for each. The list is made up of:

Google
Salesforce.com
Ceradyne
Euronet Worldwide
FalconStor Software
Cognizant Technology Solutions
Celgene
LifeCell
Martek Biosciences
j2 Global Communications
Red Hat
Digital River
Genentech
DRS Technologies
L-3 Communications Holdings
Vocus
CommVault Systems
FARO Technologies
Comtech Telecommunications
Network Appliance
NII Holdings
Diodes
Dolby Laboratories
Gen-Probe
Adobe Systems

It’s no surprise to see Google topping the list. 2007 was a good year for Google, even if their share price and profits didn’t quite match expectation at times.

Google continue to make numerous improvements to their technology, enabling them to index web pages more quickly and make search results more relevant to user search queries.

Google have also worked hard on a suite of online applications known as Google Docs. It is hoped such online applications will eventually do away with system installed Office applications such as Word and Excel.

With recent news of Yahoo! laying off employee’s it appears that Google go from strength to strength - dominating the search engine arena. However, Google have an appetite to excel in other areas as well, and continue to diversify by using their billions of dollars of profit to start new ventures, buy-out tech companies and other intellectual property (IP).

A Look At The Chart (GOOG)

From the chart we can see a sharp fall in the value of GOOG stock. The value fell from around $715 - $518. We can also see a retracement to the 38.2% Fibonacci line taking the price above $590 earlier this month.

The sharp downward spike took the stock into oversold territory, which in turn rallied, as mentioned, to the 38.2% Fibonacci line. A look at the 14-day RSI shows a fall below 30, meaning the stock is oversold. Although the RSI has only just fell below to 29.24, some temporary recovery may be seen. However, with the strong down-trend a strong breakout signal would need to be seen for confirmation of any positive price movement.

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