By Doug Busch

Even in a tape this brutal, a handful of technology stocks are displaying impressive resilience as they firm up near support levels.

The broader sector continues to face heavy selling, with the Technology Select Sector SPDR Fund down more than 5% over the last week, making it the worst major S&P sector performer out of 11. Quietly, some stocks are responding constructively however. This relative strength is meaningful, as the names that refuse to crack often emerge as early leaders once conditions stabilize. Spotting these pockets of firmness now can help identify which tech stocks are poised to regain momentum when the market finally catches its breath. Let's look at a few examples.

Palo Alto Networks, a software-focused cybersecurity company, is turning in a very mediocre 2025. The stock is flat year to date and now sits 19% off its most recent 52-week high, a clear display of relative weakness with the Amplify Cybersecurity ETF just 11% off its own annual peak. Palo Alto shares have slumped more than 10% this week alone and are on track to log their first three-week losing streak since April. The technical deterioration began in late October with a cluster of spinning-top candles, often an early sign of fatigue. I would look for entry points on gap fills near $178 from Aug. 18, a level tied to the completion of a bullish island reversal that followed a 3% earnings-day gap up. Notably, the prior bullish island reversal on April 23, also accompanied by a 3% gap, marked an intermediate low before the stock surged sharply through August and October. Use a break above $167 as the level that tells you the setup is no longer valid.

Palo Alto Networks was trading around $186 Friday.

Robinhood Markets has doubled over the last year, and that is with the stock trading 33% off its most recent 52 week high. It's down 16% this week so far, putting it on track for its worst weekly return since April. Round number theory is playing a part, with the $150 area providing a roadblock. A bearish engulfing candle on Oct. 6 and consecutive doji candles on Oct. 31 and Nov. 1 also contributed. Currently Robinhood is bouncing near the very round $100 number, which is also a gap fill from Sept. 5. I think a purchase is warranted in the $102 area and if that holds a potential double bottom base is setting up. Remain bullish above $190.

Robinhood Markets was trading around $106 Friday.

Coherent, an electronic components company, is up an impressive 44% year to date, with the bulk of that strength coming from a powerful 58% surge over the past three months. Despite that run, the stock now trades 19% off its most recent 52-week high from Nov. 10, a session that saw shares jump 8%. The current softness isn't unexpected given the market's broader weakness. The completion of a bearish island reversal on Nov. 13, triggered by an 11% gap down, offered an early clue. Coherent has fallen in seven of the last eight sessions, and I would look to enter on a pullback into its rising 50-day simple moving average near $126, which would mark the first retest of the line following the breakout above a cup-with-handle pivot at $115.44 on Oct. 8. That type of first pullback is often an optimal entry point. Look for a move toward $180 by mid-2026, and remain bullish above $115.

Coherent was trading around $137 Friday.

Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.

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November 21, 2025 12:28 ET (17:28 GMT)

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