Wall Street is dumping cash into tech at record levels — buy the dip on Accentur
Thesis
Money is flooding into U.S. technology companies at a record pace right now, giving the sector a strong tailwind. However, global IT consulting firm Accenture just spooked the market by warning of slower growth, dragging down tech stocks that rely on corporate software spending. Because the broader tech sector has so much cash flowing into it, Accenture's drop could be a temporary overreaction and a great buying opportunity to ride the overall tech wave at a discount.
Strategy approach
Build a rule-based long strategy for ACN on the Daily timeframe. Entry: enter when RSI(14) crosses above 40 after a 5%+ drawdown over the prior 5 sessions, and price is above the 200-day SMA. Exit: take profit at 3% gain, or stop loss at 3% drop, with a maximum holding period of 10 trading days.