What’s a great ASX tech stock to buy right now?

Technology shares on the ASX have had a rough run over the past year.

Rising interest rates, concerns about artificial intelligence (AI) disruption, and broader market volatility have pushed many growth stocks significantly lower.

But for long-term investors, this sell-off may be creating opportunities.

One ASX tech stock that could be worth considering right now is WiseTech Global Ltd (ASX: WTC).

At the time of writing, the WiseTech share price is $51.55, up 1.76% today.

Even after this small rebound, the stock remains well below where it traded last year.

A huge fall from its highs

WiseTech shares have fallen dramatically over the past 12 months.

The stock reached a 52-week high of $121.31 in July last year, before sliding as investor sentiment towards tech companies deteriorated.

More recently, the share price dropped to $40.59 on 13 February, marking its lowest level in almost 4 years.

Although the stock has bounced from that level, it is still trading more than 50% below its peak.

That steep decline could be one reason why the current valuation is starting to look far more attractive.

A global logistics software leader

WiseTech develops software used by freight forwarders and logistics companies around the world.

Its flagship platform, CargoWise, helps businesses manage complex global supply chains. Once embedded in a customer’s operations, the software tends to become deeply integrated into their systems.

That creates high switching costs and strong recurring revenue for the company.

WiseTech continues to expand its platform through product development and acquisitions. Management is also investing heavily in automation and AI, which could help customers improve efficiency and reduce costs.

Technical indicators suggest a recovery may be building

From a technical outlook, there are signs that the worst of the selling pressure may be easing.

The stock recently found support around the $40 to $45 range, where buyers stepped in during February.

Since then, the share price has been trending higher and is now approaching potential resistance near $60.

Momentum indicators are also improving. The relative strength index (RSI) is currently around 52, suggesting the stock is neither overbought nor oversold.

Meanwhile, the share price is trading slightly above its Bollinger Band midpoint, which can indicate a short-term recovery trend.

If momentum continues to build, a move back toward the $70 to $80 range could be possible over time.

Foolish takeaway

WiseTech shares have fallen well below their highs, but the underlying business continues to expand.

If the company delivers on its growth strategy and tech sentiment improves, the current share price could prove a compelling long-term opportunity.

For this reason, WiseTech could be one ASX tech stock worth watching closely right now.

The post What’s a great ASX tech stock to buy right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.