2 Stocks to Buy During an April Pullback
Here are 2 stocks I’d buy during an April pullback.
avatar
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2024-04-06 11:28

2 Stocks to Buy During an April Pullback
So far in April, we’ve seen a noticeable change in the psychology of the market. The Dow Jones has fallen for four consecutive days to begin the second quarter and the S&P 500 fell below its 21 EMA for the first time since November. While bears might be celebrating I think it’s a little too early to be rejoicing in a market crash. Remember, the long-term trend remains up and dips are almost always bought in a strong bull market.
2 Stocks to Buy During an April Pullback
But with that being said, I do think we can afford to pull back from recent highs. Why? Because even in a strong bull rally, markets need to breathe and consolidate. I’m not calling for a 10% drop. More like a 5% reset. If this is the case, I do have my eyes on some stocks that I’ve been wanting to add at a lower price. Here are 2 stocks I’d buy during an April pullback.

Snowflake (NYSE: SNOW)
I’ve written about Snowflake in the past and have been relatively bullish on the stock. It was hit hard recently because of a sudden change in CEO which usually never sits well with shareholders. Well, that CEO recently bought $5 million worth of Snowflake stock with his own money which certainly got the attention of investors.

There is a model that companies use to really low-ball estimates for the first quarterly reports for new CEOs. Amazon did it with Andy Jassy and Disney did it with Bob Chapek. Now, I believe Snowflake did the same for Sridhar Ramaswamy. Does that mean the stock will rise? Not exactly. The chart is intriguing though as the stock currently sits at multi-month support levels around $150. There is also the earnings gap that needs to be filled above to about $212. The risk/return of buying Snowflake at these levels is pretty high, especially if we see further downside pressure in April.

Shopify (NYSE: SHOP)
Ah, Shopify. I feel like nobody even talks about this stock anymore. It was once beloved but ever since that stock split it just hasn’t been the same. It’s had a good year but so far in 2024, it’s traded basically flat while other tech stocks have run wild. Does that mean it is overdue for a rally? Actually, kind of, it’s just that we call this consolidation.

The chart is pointing bullish with a vague cup-and-handle starting to develop on the weekly view. Above, it has a pretty solid gap to fill up to $88 on the daily chart so I think we could be in for a bullish end to the year. It’s still not a cheap stock by any means, but if we believe that tech will continue to rally this year, which I do, then I think it’s worth a stab right at this long-term support area which also aligns with the 100-day EMA.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2024-04-06 11:28

avatar
About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 1 month ago

2 Stocks to Load Up On During This Correction
Another volatile week for markets and investors are starting to feel a little uncomfortable.
By Mike Sakuraba | 1 month ago

2 Earnings to Watch for Next Week
This article is merely meant to talk about two companies that I’ll have my eyes on for earnings.
By Mike Sakuraba | 1 month ago

2 Stocks That Could Explode in Q2
Here are two stocks that I think could explode in the second quarter.
By Mike Sakuraba | 1 month ago

2 Trillion Dollar Companies in the Making
One thing for certain about these two companies is that I see the potential in how they can grow.
By Mike Sakuraba | 1 month ago

Is Tesla Back? Has TSLA Stock Finally Bottomed?
Tesla Stock Analysis: Robo Taxis to the Rescue?
By Mike Sakuraba | 1 month ago

TSM Stock: Is This The True Winner of the AI Race?
TSM’s stock has gained nearly 40% this year which is about half of NVIDIA has returned.
By Mike Sakuraba | 1 month ago

2 Under the Radar AI Stocks to Buy
If you’re tired of reading about NVIDIA, consider these two AI stocks to add while the chip market cools off.
By Mike Sakuraba | 1 month ago